HRB Dividend Type Payments

H&R BLOCK dividend

Although HRB has no upcoming (meaning, Board-approved and announced) dividends, you can sell covered calls on H&R BLOCK 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):

H&R BLOCK (HRB)
Bid Ask Last Change Volume P/E Market Cap
25.72 27.29 26.52 -0.24 1.9M 10 5.5B

HRB Dividend-Like Income Using Covered Calls

With HRB at 26.52, 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% 0.80 0.2
5% 1.33 0.4
10% 2.65 0.7

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
Nov 16 28.00 0.20 31 0.6 0.71 (2.7%)
Jan 18 31.00 0.25 94 0.3 3.71 (14.0%)
5% Yield On HRB Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Nov 16 28.00 0.20 31 0.6 0.71 (2.7%)
Jan 18 30.00 0.40 94 0.4 2.71 (10.2%)
10% Yield On HRB Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Jan 18 28.00 0.90 94 1.0 0.71 (2.7%)

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Want more examples? HR Dividend | HRC Dividend