HOMB Dividend Type Payments

Home BancShares, Inc dividend

Although HOMB has no upcoming (meaning, Board-approved and announced) dividends, you can sell covered calls on Home BancShares, Inc to create 12 extra dividend type payments per year to boost its yield. Let's look at some recent prices (last updated Wed 4:16 PM ET):

Home BancShares, Inc (HOMB)
Bid Ask Last Change Volume P/E Market Cap
18.65 20.00 18.84 -0.15 631K 11 3.2B

HOMB Dividend-Like Income Using Covered Calls

With HOMB at 18.84, 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% 0.57 0.2
5% 0.94 0.3
10% 1.88 0.5

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 HOMB Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Aug 16 20.00 0.05 31 0.2 0.00 (0.0%)
Sep 20 20.00 0.25 66 0.4 0.00 (0.0%)
5% Yield On HOMB Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Sep 20 20.00 0.25 66 0.4 0.00 (0.0%)
Dec 20 20.00 0.70 157 0.4 0.00 (0.0%)

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Want more examples? HOLX Dividend | HOME Dividend