HI Dividend

Hillenbrand, Inc dividend

Although HI has a dividend of 0.21 with an ex-dividend date of Mar 14, 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 Thu 12:55 PM ET):

Hillenbrand, Inc (HI)
Bid Ask Last Change Volume P/E Market Cap
45.31 45.34 45.30 -0.23 79K 33 2.8B

HI Dividend-Like Income Using Covered Calls

With HI at 45.30, 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% 1.36 0.4
5% 2.27 0.6
10% 4.53 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:

3% Yield On HI Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Jul 19 50.00 0.85 149 0.6 4.66 (10.3%)
Oct 18 50.00 1.55 240 0.6 4.66 (10.3%)
5% Yield On HI Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Oct 18 50.00 1.55 240 0.6 4.66 (10.3%)

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Top 10 Open Interest For Mar 15 Expiration     Top 5 High Yield
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Want more examples? HHC Dividend | HIBB Dividend