HLI Dividend Type Payments

Although HLI has no upcoming (meaning, Board-approved and announced) dividends, 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 Tue 4:16 PM ET):

Houlihan Lokey, Inc (HLI)
Bid Ask Last Change Volume P/E Market Cap
40.00 46.14 43.14 -0.02 240K 18 2.9B

HLI Dividend-Like Income Using Covered Calls

With HLI at 43.14, 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% 1.29 0.4
5% 2.16 0.6
10% 4.31 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
Dec 20 50.00 0.55 151 0.4 3.86 (8.9%)
Mar 20 50.00 1.10 242 0.5 3.86 (8.9%)

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Top 10 Open Interest For Aug 16 Expiration     Top 5 High Yield
1.SPY dividend 6.QQQ dividend   1.TWTR dividend
2.FXI dividend 7.NIO dividend   2.SNAP dividend
3.EEM dividend 8.BAC dividend   3.TSLA dividend
4.SPX dividend 9.IWM dividend   4.FB dividend
5.GDX dividend 10.GLD dividend   5.MGM dividend

Want more examples? HLF Dividend | HLIT Dividend