HRB Dividend Type Payments

H&R Block, Inc. dividend

Although HRB has no upcoming (meaning, Board-approved and announced) dividends, 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 Tue 4:16 PM ET):

H&R Block, Inc. (HRB)
Bid Ask Last Change Volume P/E Market Cap
59.87 61.90 60.78 +0.18 1.7M 17 8.1B

HRB Dividend-Like Income Using Covered Calls

With HRB at 60.78, 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% 1.82 0.5
5% 3.04 0.8
10% 6.08 1.7

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
May 16 65.00 0.80 18 4.4 3.10 (5.1%)
Oct 17 65.00 3.50 172 2.0 3.10 (5.1%)
5% Yield On HRB Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
May 16 65.00 0.80 18 4.4 3.10 (5.1%)
Oct 17 65.00 3.50 172 2.0 3.10 (5.1%)
10% Yield On HRB Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
May 16 65.00 0.80 18 4.4 3.10 (5.1%)
Oct 17 65.00 3.50 172 2.0 3.10 (5.1%)

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