HES Dividend Type Payments

Hess Corp dividend

Although HES has no upcoming (meaning, Board-approved and announced) dividends, you can sell covered calls on Hess Corp to create 12 extra dividend type payments per year to boost its yield. Let's look at some recent prices (last updated Tue 4:16 PM ET):

Hess Corp (HES)
Bid Ask Last Change Volume P/E Market Cap
47.01 48.74 47.31 -2.45 6.4M - 0.0B

HES Dividend-Like Income Using Covered Calls

With HES at 47.31, 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% 1.42 0.4
5% 2.37 0.6
10% 4.73 1.3

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
Dec 21 52.50 0.03 4 0.8 3.76 (7.9%)
Dec 28 54.50 0.05 11 0.5 5.76 (12.2%)
5% Yield On HES Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Dec 21 52.50 0.03 4 0.8 3.76 (7.9%)
Dec 28 53.50 0.08 11 0.7 4.76 (10.1%)
10% Yield On HES Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Dec 21 51.50 0.08 4 2.0 2.76 (5.8%)
Dec 28 52.00 0.20 11 1.8 3.26 (6.9%)

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Top 10 Open Interest For Dec 21 Expiration     Top 5 High Yield
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2.EEM dividend 7.FXI dividend   2. dividend
3.SPX dividend 8.GE dividend   3. dividend
4.QQQ dividend 9.BAC dividend   4. dividend
5.IWM dividend 10.VXX dividend   5. dividend

Want more examples? HEP Dividend | HESM Dividend