HST Dividend Type Payments

Host Hotels & Resorts, Inc. dividend

Although HST has no upcoming (meaning, Board-approved and announced) dividends, 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 Wed 4:16 PM ET):

Host Hotels & Resorts, Inc. (HST)
Bid Ask Last Change Volume P/E Market Cap
19.77 20.15 19.96 +0.03 6.8M 19 14B

HST Dividend-Like Income Using Covered Calls

With HST at 19.96, 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% 0.60 0.2
5% 1.00 0.3
10% 2.00 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
Feb 20 20.85 0.05 10 0.5 0.70 (3.5%)
Mar 20 21.00 0.25 38 0.7 0.85 (4.3%)
5% Yield On HST Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Feb 20 20.85 0.05 10 0.5 0.70 (3.5%)
Mar 20 21.00 0.25 38 0.7 0.85 (4.3%)
10% Yield On HST Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Mar 20 21.00 0.25 38 0.7 0.85 (4.3%)
Apr 17 20.85 0.40 66 0.6 0.70 (3.5%)

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