HFWA Dividend
Although HFWA has a dividend of 0.24 with an ex-dividend date of Nov 5, you can sell covered calls on Heritage Financial Corporation to create 12 extra dividend type payments per year to boost its yield. Let's look at some recent prices (last updated Fri 4:16 PM ET):
| Heritage Financial Corporation (HFWA) | ||||||
|---|---|---|---|---|---|---|
| Bid | Ask | Last | Change | Volume | P/E | Market Cap |
| 15.13 | 25.50 | 22.19 | -0.26 | 150K | 16 | 0.8B |
HFWA Dividend-Like Income Using Covered Calls
With HFWA at 22.19, 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% | 0.67 | 0.2 |
| 5% | 1.11 | 0.3 |
| 10% | 2.22 | 0.6 |
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:
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| Top 10 Open Interest For Nov 21 Expiration | Top 5 High Yield | |||||
|---|---|---|---|---|---|---|
| 1. | IBIT dividend | 6. | INTC dividend | 1. | GHRS dividend | |
| 2. | KVUE dividend | 7. | TLT dividend | 2. | IREN dividend | |
| 3. | NVDA dividend | 8. | ASST dividend | 3. | SRPT dividend | |
| 4. | SLV dividend | 9. | EEM dividend | 4. | UPST dividend | |
| 5. | GLD dividend | 10. | HYG dividend | 5. | HUT dividend | |
Want more examples? HEZU Dividend | HFXI Dividend
