HPE Dividend

Although HPE has a dividend of 0.11 with an ex-dividend date of Dec 11, you can sell covered calls on HEWLETT PACKARD ENTERPRISES CO 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):

HEWLETT PACKARD ENTERPRISES CO (HPE)
Bid Ask Last Change Volume P/E Market Cap
15.51 15.85 15.84 +0.40 7.8M 7.6 23B

HPE Dividend-Like Income Using Covered Calls

With HPE at 15.84, 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% 0.48 0.1
5% 0.79 0.2
10% 1.58 0.4

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 HPE Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Oct 26 17.00 0.01 5 0.2 1.15 (7.3%)
Nov 2 17.00 0.04 12 0.3 1.15 (7.3%)
5% Yield On HPE Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Oct 26 16.50 0.08 5 1.6 0.65 (4.1%)
Nov 2 17.00 0.04 12 0.3 1.15 (7.3%)
10% Yield On HPE Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Oct 26 16.50 0.08 5 1.6 0.65 (4.1%)
Nov 2 16.50 0.14 12 1.2 0.65 (4.1%)

Want to increase dividends with covered calls?  Sign Up For A Free Trial

 
Top 10 Open Interest For Nov 16 Expiration     Top 5 High Yield
1.SPY dividend 6.SPX dividend   1.AMD dividend
2.EWZ dividend 7.VXX dividend   2.SNAP dividend
3.EEM dividend 8.FXI dividend   3.TWTR dividend
4.PBR dividend 9.IWM dividend   4.UVXY dividend
5.QQQ dividend 10.BAC dividend   5.AKS dividend

Want more examples? HP Dividend | HPJ Dividend