HSY Dividend
Although HSY has a dividend of 1.45 with an ex-dividend date of Feb 17, you can sell covered calls on The Hershey Company 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):
| The Hershey Company (HSY) | ||||||
|---|---|---|---|---|---|---|
| Bid | Ask | Last | Change | Volume | P/E | Market Cap |
| 222.50 | 235.09 | 230.85 | +1.85 | 3.3M | 42 | 46B |
HSY Dividend-Like Income Using Covered Calls
With HSY at 230.85, 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% | 6.93 | 1.9 |
| 5% | 11.54 | 3.2 |
| 10% | 23.09 | 6.3 |
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 HSY Using Covered Calls | ||||||
|---|---|---|---|---|---|---|
| Expiration | Strike | Call Bid | Days | Cents/Day | Upside Potential | |
| Feb 13 | 235.00 | 0.30 | 3 | 7.0 | 0.00 (0.0%) | |
| Feb 20 | 235.00 | 1.00 | 10 | 9.1 | 0.00 (0.0%) | |
| 5% Yield On HSY Using Covered Calls | ||||||
|---|---|---|---|---|---|---|
| Expiration | Strike | Call Bid | Days | Cents/Day | Upside Potential | |
| Feb 13 | 235.00 | 0.30 | 3 | 7.0 | 0.00 (0.0%) | |
| Feb 20 | 235.00 | 1.00 | 10 | 9.1 | 0.00 (0.0%) | |
| 10% Yield On HSY Using Covered Calls | ||||||
|---|---|---|---|---|---|---|
| Expiration | Strike | Call Bid | Days | Cents/Day | Upside Potential | |
| Feb 13 | 235.00 | 0.30 | 3 | 7.0 | 0.00 (0.0%) | |
| Feb 20 | 235.00 | 1.00 | 10 | 9.1 | 0.00 (0.0%) | |
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| Top 10 Open Interest For Feb 20 Expiration | Top 5 High Yield | |||||
|---|---|---|---|---|---|---|
| 1. | SLV dividend | 6. | QQQ dividend | 1. | NRGV dividend | |
| 2. | NVDA dividend | 7. | SPY dividend | 2. | APP dividend | |
| 3. | KWEB dividend | 8. | EWZ dividend | 3. | AAP dividend | |
| 4. | GLD dividend | 9. | TLT dividend | 4. | CSCO dividend | |
| 5. | IBIT dividend | 10. | INTC dividend | 5. | PINS dividend | |
Want more examples? HSTM Dividend | HTAB Dividend
