HST Dividend Type Payments
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 Thu 10:15 AM ET):
Host Hotels & Resorts, Inc. (HST) | ||||||
---|---|---|---|---|---|---|
Bid | Ask | Last | Change | Volume | P/E | Market Cap |
15.36 | 15.37 | 15.37 | +0.06 | 684K | 16 | 11B |
HST Dividend-Like Income Using Covered Calls
With HST at 15.37, 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% | 0.46 | 0.1 |
5% | 0.77 | 0.2 |
10% | 1.54 | 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 | 0.35 | 72 | 0.5 | 0.63 (4.1%) | |
Sep 19 | 16.00 | 0.25 | 44 | 0.6 | 0.63 (4.1%) |
5% Yield On HST Using Covered Calls | ||||||
---|---|---|---|---|---|---|
Expiration | Strike | Call Bid | Days | Cents/Day | Upside Potential | |
Oct 17 | 16.00 | 0.35 | 72 | 0.5 | 0.63 (4.1%) | |
Sep 19 | 16.00 | 0.25 | 44 | 0.6 | 0.63 (4.1%) |
10% Yield On HST Using Covered Calls | ||||||
---|---|---|---|---|---|---|
Expiration | Strike | Call Bid | Days | Cents/Day | Upside Potential | |
Oct 17 | 16.00 | 0.35 | 72 | 0.5 | 0.63 (4.1%) | |
Sep 19 | 16.00 | 0.25 | 44 | 0.6 | 0.63 (4.1%) |
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Top 10 Open Interest For Aug 15 Expiration | Top 5 High Yield | |||||
---|---|---|---|---|---|---|
1. | SLV dividend | 6. | GLD dividend | 1. | AAOI dividend | |
2. | NVDA dividend | 7. | AMZN dividend | 2. | PCT dividend | |
3. | IWM dividend | 8. | TSLA dividend | 3. | TWLO dividend | |
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5. | IBIT dividend | 10. | QQQ dividend | 5. | SG dividend |
Want more examples? HSMV Dividend | HSTM Dividend