HIW Dividend
Although HIW has a dividend of 0.50 with an ex-dividend date of Aug 18, you can sell covered calls on Highwoods Properties, 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):
| Highwoods Properties, Inc. (HIW) | ||||||
|---|---|---|---|---|---|---|
| Bid | Ask | Last | Change | Volume | P/E | Market Cap |
| 29.04 | 30.36 | 29.04 | +0.48 | 2.1M | 24 | 3.1B |
HIW Dividend-Like Income Using Covered Calls
With HIW at 29.04, 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% | 0.87 | 0.2 |
| 5% | 1.45 | 0.4 |
| 10% | 2.90 | 0.8 |
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 Aug 15 Expiration | Top 5 High Yield | |||||
|---|---|---|---|---|---|---|
| 1. | SLV dividend | 6. | GLD dividend | 1. | TSSI dividend | |
| 2. | NVDA dividend | 7. | TSLA dividend | 2. | AAOI dividend | |
| 3. | IWM dividend | 8. | AMZN dividend | 3. | IONQ dividend | |
| 4. | SPY dividend | 9. | QQQ dividend | 4. | HLF dividend | |
| 5. | IBIT dividend | 10. | INTC dividend | 5. | APP dividend | |
Want more examples? HIVE Dividend | HL Dividend
