HLI Dividend

Although HLI has a dividend of 0.27 with an ex-dividend date of Mar 1, you can sell covered calls on Houlihan Lokey, Inc 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):

Houlihan Lokey, Inc (HLI)
Bid Ask Last Change Volume P/E Market Cap
43.78 47.43 45.60 +0.61 158K 20 2.9B

HLI Dividend-Like Income Using Covered Calls

With HLI at 45.60, 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% 1.37 0.4
5% 2.28 0.6
10% 4.56 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 HLI Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Jun 21 50.00 0.85 127 0.7 2.57 (5.6%)
Sep 20 50.00 1.65 218 0.8 2.57 (5.6%)
5% Yield On HLI Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Jun 21 50.00 0.85 127 0.7 2.57 (5.6%)
Sep 20 50.00 1.65 218 0.8 2.57 (5.6%)

Want to increase dividends with covered calls?  Sign Up For A Free Trial

 
Top 10 Open Interest For Mar 15 Expiration     Top 5 High Yield
1.SPX dividend 6.EWZ dividend   1.ICPT dividend
2.EEM dividend 7.GE dividend   2.ROKU dividend
3.SPY dividend 8.XOP dividend   3.KPTI dividend
4.FXI dividend 9.BAC dividend   4.BHC dividend
5.QQQ dividend 10.JD dividend   5.VKTX dividend

Want more examples? HLF Dividend | HLIT Dividend