HRB Dividend

H&R Block, Inc. dividend

Although HRB has a dividend of 0.42 with an ex-dividend date of Dec 4, you can sell covered calls on H&R Block, Inc. to create 12 extra dividend type payments per year to boost its yield. Let's look at some recent prices (last updated Wed 3:20 PM ET):

H&R Block, Inc. (HRB)
Bid Ask Last Change Volume P/E Market Cap
50.62 50.65 50.63 +0.65 782K 11 6.7B

HRB Dividend-Like Income Using Covered Calls

With HRB at 50.63, 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% 1.52 0.4
5% 2.53 0.7
10% 5.06 1.4

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 HRB Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Dec 19 55.00 0.55 45 1.2 4.35 (8.6%)
Nov 21 55.00 0.25 17 1.5 4.35 (8.6%)
5% Yield On HRB Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Dec 19 55.00 0.55 45 1.2 4.35 (8.6%)
Nov 21 55.00 0.25 17 1.5 4.35 (8.6%)
10% Yield On HRB Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Nov 21 55.00 0.25 17 1.5 4.35 (8.6%)

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

 
 
Top 10 Open Interest For Nov 21 Expiration     Top 5 High Yield
1.IBIT dividend 6.TLT dividend   1.TTD dividend
2.KVUE dividend 7.INTC dividend   2.CELH dividend
3.NVDA dividend 8.ASST dividend   3.SOUN dividend
4.SLV dividend 9.HYG dividend   4.SG dividend
5.GLD dividend 10.SPY dividend   5.LCID dividend

Want more examples? HR Dividend | HRI Dividend