HP Dividend Type Payments
Although HP has no upcoming (meaning, Board-approved and announced) dividends, you can sell covered calls on Helmerich & Payne, Inc. to create 12 extra dividend type payments per year to boost its yield. Let's look at some recent prices (last updated Thu 4:16 PM ET):
Helmerich & Payne, Inc. (HP) | ||||||
---|---|---|---|---|---|---|
Bid | Ask | Last | Change | Volume | P/E | Market Cap |
41.78 | 42.60 | 42.06 | -0.17 | 667K | 10 | 4.2B |
HP Dividend-Like Income Using Covered Calls
With HP at 42.06, 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% | 1.26 | 0.3 |
5% | 2.10 | 0.6 |
10% | 4.21 | 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 HP Using Covered Calls | ||||||
---|---|---|---|---|---|---|
Expiration | Strike | Call Bid | Days | Cents/Day | Upside Potential | |
Apr 19 | 42.50 | 1.00 | 23 | 3.9 | 0.00 (0.0%) | |
May 17 | 42.50 | 2.00 | 51 | 3.7 | 0.00 (0.0%) |
5% Yield On HP Using Covered Calls | ||||||
---|---|---|---|---|---|---|
Expiration | Strike | Call Bid | Days | Cents/Day | Upside Potential | |
Apr 19 | 42.50 | 1.00 | 23 | 3.9 | 0.00 (0.0%) | |
May 17 | 42.50 | 2.00 | 51 | 3.7 | 0.00 (0.0%) |
10% Yield On HP Using Covered Calls | ||||||
---|---|---|---|---|---|---|
Expiration | Strike | Call Bid | Days | Cents/Day | Upside Potential | |
Apr 19 | 42.50 | 1.00 | 23 | 3.9 | 0.00 (0.0%) | |
May 17 | 42.50 | 2.00 | 51 | 3.7 | 0.00 (0.0%) |
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Top 10 Open Interest For Apr 19 Expiration | Top 5 High Yield | |||||
---|---|---|---|---|---|---|
1. | IWM dividend | 6. | TLT dividend | 1. | MRNS dividend | |
2. | SPY dividend | 7. | HYG dividend | 2. | LUNR dividend | |
3. | QQQ dividend | 8. | AAPL dividend | 3. | SOUN dividend | |
4. | FXI dividend | 9. | EEM dividend | 4. | CLSK dividend | |
5. | SLV dividend | 10. | TSLA dividend | 5. | CIFR dividend |
Want more examples? HOPE Dividend | HPE Dividend