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 Mon 4:16 PM ET):

HARLEY-DAVIDSON (HOG)
Bid Ask Last Change Volume P/E Market Cap
41.00 42.58 42.44 +0.18 2.0M 14 7.0B

HOG Dividend-Like Income Using Covered Calls

With HOG at 42.44, 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% 1.27 0.3
5% 2.12 0.6
10% 4.24 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 HOG Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Aug 24 44.00 0.02 5 0.4 1.42 (3.3%)
Aug 31 45.00 0.05 12 0.4 2.42 (5.7%)
5% Yield On HOG Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Aug 24 43.50 0.11 5 2.2 0.92 (2.2%)
Aug 31 44.50 0.10 12 0.8 1.92 (4.5%)
10% Yield On HOG Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Aug 24 43.50 0.11 5 2.2 0.92 (2.2%)
Aug 31 44.00 0.19 12 1.6 1.42 (3.3%)

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