HRS Dividend Type Payments

Harris Corp dividend

Although HRS has no upcoming (meaning, Board-approved and announced) dividends, you can sell covered calls on Harris Corp 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):

Harris Corp (HRS)
Bid Ask Last Change Volume P/E Market Cap
143.74 168.00 159.28 -2.89 640K 23 19B

HRS Dividend-Like Income Using Covered Calls

With HRS at 159.28, 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% 4.78 1.3
5% 7.96 2.2
10% 15.93 4.4

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 HRS Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
May 17 175.00 1.15 57 2.0 7.00 (4.4%)
Aug 16 180.00 2.30 148 1.6 12.00 (7.5%)
5% Yield On HRS Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
May 17 170.00 2.15 57 3.8 2.00 (1.3%)
Aug 16 175.00 3.50 148 2.4 7.00 (4.4%)

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