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 Mon 4:16 PM ET):

H&R Block, Inc (HRB)
Bid Ask Last Change Volume P/E Market Cap
24.52 27.30 26.23 -0.75 3.1M - 0.0B

HRB Dividend-Like Income Using Covered Calls

With HRB at 26.23, 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% 0.79 0.2
5% 1.31 0.4
10% 2.62 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
Jan 18 29.00 0.10 33 0.3 1.70 (6.5%)
Apr 18 32.00 0.30 123 0.2 4.70 (17.9%)
5% Yield On HRB Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Jan 18 28.00 0.30 33 0.9 0.70 (2.7%)
Apr 18 31.00 0.45 123 0.4 3.70 (14.1%)
10% Yield On HRB Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Jan 18 28.00 0.30 33 0.9 0.70 (2.7%)
Apr 18 28.00 1.15 123 0.9 0.70 (2.7%)

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