HII Dividend Type Payments

Huntington Ingalls Industries, Inc. dividend

Although HII has no upcoming (meaning, Board-approved and announced) dividends, you can sell covered calls on Huntington Ingalls Industries, Inc. to create 12 extra dividend type payments per year to boost its yield. Let's look at some recent prices (last updated Wed 4:16 PM ET):

Huntington Ingalls Industries, Inc. (HII)
Bid Ask Last Change Volume P/E Market Cap
257.26 285.01 275.84 +1.37 490K 16 11B

HII Dividend-Like Income Using Covered Calls

With HII at 275.84, 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% 8.28 2.3
5% 13.79 3.8
10% 27.58 7.6

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:

3% Yield On HII Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
May 17 290.00 2.50 24 10.4 4.99 (1.8%)
Jun 21 290.00 4.00 59 6.8 4.99 (1.8%)
5% Yield On HII Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
May 17 290.00 2.50 24 10.4 4.99 (1.8%)
Jun 21 290.00 4.00 59 6.8 4.99 (1.8%)
10% Yield On HII Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
May 17 290.00 2.50 24 10.4 4.99 (1.8%)

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