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 Fri 4:16 PM ET):

H&R BLOCK (HRB)
Bid Ask Last Change Volume P/E Market Cap
26.38 26.55 26.42 +0.05 1.2M 9.0 5.4B

HRB Dividend-Like Income Using Covered Calls

With HRB at 26.42, 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% 1.32 0.4
10% 2.64 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
Sep 21 30.00 0.10 36 0.3 3.45 (13.1%)
Oct 19 30.00 0.20 64 0.3 3.45 (13.1%)
5% Yield On HRB Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Sep 21 29.00 0.25 36 0.7 2.45 (9.3%)
Oct 19 29.00 0.35 64 0.5 2.45 (9.3%)
10% Yield On HRB Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Sep 21 28.00 0.50 36 1.4 1.45 (5.5%)
Oct 19 28.00 0.60 64 0.9 1.45 (5.5%)

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Want more examples? HR Dividend | HRC Dividend