HES Dividend Type Payments
Although HES has no upcoming (meaning, Board-approved and announced) dividends, you can sell covered calls on HESS to create 12 extra dividend type payments per year to boost its yield. Let's look at some recent prices (last updated Mon 1:35 PM ET):
| HESS (HES) | ||||||
|---|---|---|---|---|---|---|
| Bid | Ask | Last | Change | Volume | P/E | Market Cap |
| 66.25 | 66.29 | 66.26 | +0.10 | 874K | - | 20B |
HES Dividend-Like Income Using Covered Calls
With HES at 66.26, 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% | 1.99 | 0.5 |
| 5% | 3.31 | 0.9 |
| 10% | 6.63 | 1.8 |
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:
| 3% Yield On HES Using Covered Calls | ||||||
|---|---|---|---|---|---|---|
| Expiration | Strike | Call Bid | Days | Cents/Day | Upside Potential | |
| Oct 19 | 77.00 | 0.03 | 5 | 0.6 | 10.71 (16.2%) | |
| Oct 26 | 78.00 | 0.07 | 12 | 0.6 | 11.71 (17.7%) | |
| 5% Yield On HES Using Covered Calls | ||||||
|---|---|---|---|---|---|---|
| Expiration | Strike | Call Bid | Days | Cents/Day | Upside Potential | |
| Oct 19 | 75.00 | 0.05 | 5 | 1.0 | 8.71 (13.1%) | |
| Oct 26 | 75.00 | 0.12 | 12 | 1.0 | 8.71 (13.1%) | |
| 10% Yield On HES Using Covered Calls | ||||||
|---|---|---|---|---|---|---|
| Expiration | Strike | Call Bid | Days | Cents/Day | Upside Potential | |
| Oct 19 | 71.00 | 0.11 | 5 | 2.2 | 4.71 (7.1%) | |
| Oct 26 | 72.50 | 0.22 | 12 | 1.8 | 6.21 (9.4%) | |
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| Top 10 Open Interest For Oct 19 Expiration | Top 5 High Yield | |||||
|---|---|---|---|---|---|---|
| 1. | SPY dividend | 6. | MU dividend | 1. | UVXY dividend | |
| 2. | SPX dividend | 7. | FXI dividend | 2. | CRON dividend | |
| 3. | EEM dividend | 8. | BAC dividend | 3. | NIO dividend | |
| 4. | QQQ dividend | 9. | AMD dividend | 4. | PYX dividend | |
| 5. | PBR dividend | 10. | XLF dividend | 5. | TLRY dividend | |
Want more examples? HEP Dividend | HESM Dividend
