HOG Dividend Type Payments

HARLEY-DAVIDSON dividend

Although HOG has no upcoming (meaning, Board-approved and announced) dividends, you can sell covered calls on HARLEY-DAVIDSON to create 12 extra dividend type payments per year to boost its yield. Let's look at some recent prices (last updated Fri 1:00 PM ET):

HARLEY-DAVIDSON (HOG)
Bid Ask Last Change Volume P/E Market Cap
39.64 39.66 39.65 -0.71 1.9M 14 6.7B

HOG Dividend-Like Income Using Covered Calls

With HOG at 39.65, 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% 1.19 0.3
5% 1.98 0.5
10% 3.97 1.1

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 HOG Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Oct 26 45.50 0.03 8 0.4 5.84 (14.7%)
Nov 2 45.50 0.06 15 0.4 5.84 (14.7%)
5% Yield On HOG Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Oct 26 45.00 0.05 8 0.6 5.34 (13.5%)
Nov 2 44.50 0.11 15 0.7 4.84 (12.2%)
10% Yield On HOG Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Oct 26 44.50 0.10 8 1.3 4.84 (12.2%)
Nov 2 43.50 0.22 15 1.5 3.84 (9.7%)

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