HOG Dividend Type Payments

Harley-Davidson, Inc. dividend

Although HOG has no upcoming (meaning, Board-approved and announced) dividends, you can sell covered calls on Harley-Davidson, Inc. to create 12 extra dividend type payments per year to boost its yield. Let's look at some recent prices (last updated Fri 3:05 PM ET):

Harley-Davidson, Inc. (HOG)
Bid Ask Last Change Volume P/E Market Cap
23.20 23.21 23.20 +0.94 3.2M 5.3 2.6B

HOG Dividend-Like Income Using Covered Calls

With HOG at 23.20, 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% 0.70 0.2
5% 1.16 0.3
10% 2.32 0.6

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
Dec 5 23.50 0.55 15 3.7 0.29 (1.3%)
Dec 12 24.00 0.45 22 2.0 0.79 (3.4%)
5% Yield On HOG Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Dec 5 23.50 0.55 15 3.7 0.29 (1.3%)
Dec 12 24.00 0.45 22 2.0 0.79 (3.4%)
10% Yield On HOG Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Dec 5 23.50 0.55 15 3.7 0.29 (1.3%)
Dec 12 24.00 0.45 22 2.0 0.79 (3.4%)

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