HI Dividend Type Payments
Although HI has no upcoming (meaning, Board-approved and announced) dividends, you can sell covered calls on Hillenbrand Inc 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):
Hillenbrand Inc (HI) | ||||||
---|---|---|---|---|---|---|
Bid | Ask | Last | Change | Volume | P/E | Market Cap |
41.50 | 51.22 | 42.44 | +0.55 | 474K | 35 | 2.9B |
HI Dividend-Like Income Using Covered Calls
With HI at 42.44, 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% | 1.27 | 0.3 |
5% | 2.12 | 0.6 |
10% | 4.24 | 1.2 |
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 May 17 Expiration | Top 5 High Yield | |||||
---|---|---|---|---|---|---|
1. | IWM dividend | 6. | EEM dividend | 1. | BYND dividend | |
2. | QQQ dividend | 7. | TSLA dividend | 2. | HIMS dividend | |
3. | HYG dividend | 8. | SLV dividend | 3. | BYON dividend | |
4. | SPY dividend | 9. | TLT dividend | 4. | UPST dividend | |
5. | FXI dividend | 10. | AMZN dividend | 5. | RIVN dividend |
Want more examples? HHH Dividend | HIBB Dividend