HLI Dividend

Although HLI has a dividend of 0.60 with an ex-dividend date of Mar 2, you can sell covered calls on Houlihan Lokey, Inc. Class A 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):

Houlihan Lokey, Inc. Class A (HLI)
Bid	Ask	Last	Change	Volume	P/E	Market Cap
163.02	177.98	170.15	-2.42	461K	27	12B

HLI Dividend-Like Income Using Covered Calls

With HLI at 170.15, 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%	5.10	1.4
5%	8.51	2.3
10%	17.02	4.7

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 HLI Using Covered Calls
Expiration	Strike	Call Bid	Days	Cents/Day	Upside Potential
Mar 20	180.00	0.95	38	2.5	2.02 (1.2%)
Jun 18	180.00	5.60	128	4.4	2.02 (1.2%)

5% Yield On HLI Using Covered Calls
Expiration	Strike	Call Bid	Days	Cents/Day	Upside Potential
Mar 20	180.00	0.95	38	2.5	2.02 (1.2%)
Jun 18	180.00	5.60	128	4.4	2.02 (1.2%)

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Want more examples? HLF Dividend | HLIO Dividend