HRC Dividend Type Payments

Hill-Rom Holdings, Inc dividend

Although HRC has no upcoming (meaning, Board-approved and announced) dividends, you can sell covered calls on Hill-Rom Holdings, Inc 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):

Hill-Rom Holdings, Inc (HRC)
Bid Ask Last Change Volume P/E Market Cap
104.00 104.60 104.43 -2.67 692K 35 7.1B

HRC Dividend-Like Income Using Covered Calls

With HRC at 104.43, 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% 3.13 0.9
5% 5.22 1.4
10% 10.44 2.9

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 HRC Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Apr 18 115.00 0.25 28 0.9 10.40 (10.0%)
May 17 115.00 1.10 57 1.9 10.40 (10.0%)
5% Yield On HRC Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Apr 18 110.00 0.75 28 2.7 5.40 (5.2%)
May 17 115.00 1.10 57 1.9 10.40 (10.0%)
10% Yield On HRC Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Apr 18 105.00 2.30 28 8.2 0.40 (0.4%)
May 17 110.00 2.05 57 3.6 5.40 (5.2%)

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