HIG Dividend

HARTFORD FINANCIAL dividend

Although HIG has a dividend of 0.30 with an ex-dividend date of Aug 31, you can sell covered calls on HARTFORD FINANCIAL 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):

HARTFORD FINANCIAL (HIG)
Bid Ask Last Change Volume P/E Market Cap
49.97 52.19 51.96 +0.26 1.1M - 19B

HIG Dividend-Like Income Using Covered Calls

With HIG at 51.96, 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% 1.56 0.4
5% 2.60 0.7
10% 5.20 1.4

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 HIG Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Aug 24 53.00 0.09 8 1.1 0.81 (1.6%)
Aug 31 53.50 0.11 15 0.7 1.31 (2.5%)
5% Yield On HIG Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Aug 24 53.00 0.09 8 1.1 0.81 (1.6%)
Aug 31 53.50 0.11 15 0.7 1.31 (2.5%)
10% Yield On HIG Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Aug 24 52.50 0.21 8 2.6 0.31 (0.6%)
Aug 31 52.50 0.35 15 2.3 0.31 (0.6%)

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