HTLF Dividend
Although HTLF has a dividend of 0.30 with an ex-dividend date of May 10, you can sell covered calls on Heartland Financial USA, Inc. to create 12 extra dividend type payments per year to boost its yield. Let's look at some recent prices (last updated Fri 9:45 AM ET):
Heartland Financial USA, Inc. (HTLF) | ||||||
---|---|---|---|---|---|---|
Bid | Ask | Last | Change | Volume | P/E | Market Cap |
35.66 | 35.85 | 35.72 | +0.24 | 14K | 21 | 1.5B |
HTLF Dividend-Like Income Using Covered Calls
With HTLF at 35.72, 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% | 1.07 | 0.3 |
5% | 1.79 | 0.5 |
10% | 3.57 | 1.0 |
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 HTLF Using Covered Calls | ||||||
---|---|---|---|---|---|---|
Expiration | Strike | Call Bid | Days | Cents/Day | Upside Potential | |
Sep 20 | 40.00 | 0.75 | 148 | 0.5 | 4.15 (11.6%) | |
Dec 20 | 40.00 | 0.80 | 239 | 0.3 | 4.15 (11.6%) |
5% Yield On HTLF Using Covered Calls | ||||||
---|---|---|---|---|---|---|
Expiration | Strike | Call Bid | Days | Cents/Day | Upside Potential | |
Sep 20 | 40.00 | 0.75 | 148 | 0.5 | 4.15 (11.6%) |
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Top 10 Open Interest For May 17 Expiration | Top 5 High Yield | |||||
---|---|---|---|---|---|---|
1. | IWM dividend | 6. | EEM dividend | 1. | ENVX dividend | |
2. | HYG dividend | 7. | KWEB dividend | 2. | WOLF dividend | |
3. | QQQ dividend | 8. | SLV dividend | 3. | FSLY dividend | |
4. | SPY dividend | 9. | TSLA dividend | 4. | CLSK dividend | |
5. | FXI dividend | 10. | NVDA dividend | 5. | PINS dividend |
Want more examples? HTLD Dividend | HTRB Dividend