HE Dividend

HAWAIIAN ELECTRIC dividend

Although HE has a dividend of 0.31 with an ex-dividend date of Aug 20, you can sell covered calls on HAWAIIAN ELECTRIC to create 12 extra dividend type payments per year to boost its yield. Let's look at some recent prices (last updated Wed 10:10 AM ET):

HAWAIIAN ELECTRIC (HE)
Bid Ask Last Change Volume P/E Market Cap
35.30 35.33 35.27 +0.19 16K 21 3.8B

HE Dividend-Like Income Using Covered Calls

With HE at 35.27, here's a table showing how big the annual "dividend" (ie. total annual call premium received) would need to be to attain 3%, 5%, and 10% annual yields. Also shown is the equivalent number of cents/day necessary to achieve each yield:

Annual Yield Annual Premium Cents/Day
3% 1.06 0.3
5% 1.76 0.5
10% 3.53 1.0

So now we need to find out of the money covered calls that pay at least the prescribed cents/day amount of time premium. That will generate income and, because they are out of the money, leave room for some upside potential on the stock. Here are some examples:

Want to increase dividends with covered calls?  Sign Up For A Free Trial

 
Top 10 Open Interest For Aug 17 Expiration     Top 5 High Yield
1.SPY dividend 6.XLF dividend   1.UVXY dividend
2.EEM dividend 7.FB dividend   2.LCI dividend
3.QQQ dividend 8.FXI dividend   3.NVDA dividend
4.SPX dividend 9.GLD dividend   4.JWN dividend
5.BAC dividend 10.AABA dividend   5.GDS dividend

Want more examples? HDV Dividend | HEAR Dividend