HLI Dividend

Although HLI has a dividend of 0.60 with an ex-dividend date of Sep 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 Tue 4:16 PM ET):

Houlihan Lokey, Inc. Class A (HLI)
Bid	Ask	Last	Change	Volume	P/E	Market Cap
183.60	197.84	192.39	-0.76	323K	33	14B

HLI Dividend-Like Income Using Covered Calls

With HLI at 192.39, 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%	5.77	1.6
5%	9.62	2.6
10%	19.24	5.3

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
Sep 19	200.00	1.15	46	2.5	2.16 (1.1%)
Dec 19	200.00	7.00	137	5.1	2.16 (1.1%)

5% Yield On HLI Using Covered Calls
Expiration	Strike	Call Bid	Days	Cents/Day	Upside Potential
Dec 19	200.00	7.00	137	5.1	2.16 (1.1%)
Mar 20	200.00	10.40	228	4.6	2.16 (1.1%)

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Want more examples? HLF Dividend | HLIO Dividend