HST Dividend

Host Hotels & Resorts, Inc dividend

Although HST has a dividend of 0.20 with an ex-dividend date of Mar 28, you can sell covered calls on Host Hotels & Resorts, Inc to create 12 extra dividend type payments per year to boost its yield. Let's look at some recent prices (last updated Thu 4:16 PM ET):

Host Hotels & Resorts, Inc (HST)
Bid Ask Last Change Volume P/E Market Cap
19.10 19.17 19.15 +0.03 7.5M 13 14B

HST Dividend-Like Income Using Covered Calls

With HST at 19.15, 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% 0.57 0.2
5% 0.96 0.3
10% 1.92 0.5

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 HST Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Apr 18 20.00 0.05 29 0.2 0.83 (4.3%)
May 17 20.00 0.20 58 0.3 0.83 (4.3%)
5% Yield On HST Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
May 17 20.00 0.20 58 0.3 0.83 (4.3%)
Jul 19 20.00 0.35 121 0.3 0.83 (4.3%)

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