HES Dividend Type Payments
Although HES has no upcoming (meaning, Board-approved and announced) dividends, you can sell covered calls on Hess Corporation to create 12 extra dividend type payments per year to boost its yield. Let's look at some recent prices (last updated Thu 9:45 AM ET):
Hess Corporation (HES) | ||||||
---|---|---|---|---|---|---|
Bid | Ask | Last | Change | Volume | P/E | Market Cap |
147.09 | 147.20 | 147.15 | -0.40 | 53K | 20 | 46B |
HES Dividend-Like Income Using Covered Calls
With HES at 147.15, here's a table showing how big the annual "dividend" (i.e. 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% | 4.41 | 1.2 |
5% | 7.36 | 2.0 |
10% | 14.72 | 4.0 |
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:
3% Yield On HES Using Covered Calls | ||||||
---|---|---|---|---|---|---|
Expiration | Strike | Call Bid | Days | Cents/Day | Upside Potential | |
Aug 1 | 147.00 | 3.60 | 16 | 21.3 | 0.00 (0.0%) | |
Aug 8 | 147.00 | 4.10 | 23 | 17.0 | 0.00 (0.0%) |
5% Yield On HES Using Covered Calls | ||||||
---|---|---|---|---|---|---|
Expiration | Strike | Call Bid | Days | Cents/Day | Upside Potential | |
Aug 1 | 147.00 | 3.60 | 16 | 21.3 | 0.00 (0.0%) | |
Aug 8 | 147.00 | 4.10 | 23 | 17.0 | 0.00 (0.0%) |
10% Yield On HES Using Covered Calls | ||||||
---|---|---|---|---|---|---|
Expiration | Strike | Call Bid | Days | Cents/Day | Upside Potential | |
Aug 1 | 147.00 | 3.60 | 16 | 21.3 | 0.00 (0.0%) | |
Aug 8 | 147.00 | 4.10 | 23 | 17.0 | 0.00 (0.0%) |
Want to increase dividends with covered calls? Sign Up For A Free Trial
Top 10 Open Interest For Jul 18 Expiration | Top 5 High Yield | |||||
---|---|---|---|---|---|---|
1. | NVDA dividend | 6. | IWM dividend | 1. | CELC dividend | |
2. | SLV dividend | 7. | GLD dividend | 2. | ALB dividend | |
3. | SPY dividend | 8. | TLT dividend | 3. | AAP dividend | |
4. | TSLA dividend | 9. | QQQ dividend | 4. | AEVA dividend | |
5. | AAPL dividend | 10. | AMZN dividend | 5. | BIGC dividend |
Want more examples? HERO Dividend | HESM Dividend