HST Dividend
Although HST has a dividend of 0.20 with an ex-dividend date of Jun 30, 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 Mon 12:15 PM ET):
Host Hotels & Resorts, Inc. (HST) | ||||||
---|---|---|---|---|---|---|
Bid | Ask | Last | Change | Volume | P/E | Market Cap |
15.57 | 15.58 | 15.57 | +0.35 | 1.9M | 16 | 11B |
HST Dividend-Like Income Using Covered Calls
With HST at 15.57, here's a table showing how big the annual "dividend" (i.e. 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% | 0.47 | 0.1 |
5% | 0.78 | 0.2 |
10% | 1.56 | 0.4 |
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 HST Using Covered Calls | ||||||
---|---|---|---|---|---|---|
Expiration | Strike | Call Bid | Days | Cents/Day | Upside Potential | |
Oct 17 | 16.00 | 0.70 | 124 | 0.6 | 0.42 (2.7%) | |
Jul 18 | 16.00 | 0.15 | 33 | 0.5 | 0.42 (2.7%) |
5% Yield On HST Using Covered Calls | ||||||
---|---|---|---|---|---|---|
Expiration | Strike | Call Bid | Days | Cents/Day | Upside Potential | |
Oct 17 | 16.00 | 0.70 | 124 | 0.6 | 0.42 (2.7%) | |
Jul 18 | 16.00 | 0.15 | 33 | 0.5 | 0.42 (2.7%) |
10% Yield On HST Using Covered Calls | ||||||
---|---|---|---|---|---|---|
Expiration | Strike | Call Bid | Days | Cents/Day | Upside Potential | |
Oct 17 | 16.00 | 0.70 | 124 | 0.6 | 0.42 (2.7%) | |
Jul 18 | 16.00 | 0.15 | 33 | 0.5 | 0.42 (2.7%) |
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Top 10 Open Interest For Jun 20 Expiration | Top 5 High Yield | |||||
---|---|---|---|---|---|---|
1. | NVDA dividend | 6. | SLV dividend | 1. | DYN dividend | |
2. | SPY dividend | 7. | IWM dividend | 2. | CAPR dividend | |
3. | QQQ dividend | 8. | TLT dividend | 3. | GES dividend | |
4. | TSLA dividend | 9. | AAPL dividend | 4. | MYGN dividend | |
5. | GLD dividend | 10. | INTC dividend | 5. | PHAT dividend |
Want more examples? HSMV Dividend | HSTM Dividend