HUM Dividend
Although HUM has a dividend of 0.89 with an ex-dividend date of Jun 28, you can sell covered calls on Humana Inc. to create 12 extra dividend type payments per year to boost its yield. Let's look at some recent prices (last updated Tue 4:16 PM ET):
Humana Inc. (HUM) | ||||||
---|---|---|---|---|---|---|
Bid | Ask | Last | Change | Volume | P/E | Market Cap |
322.00 | 331.49 | 327.98 | +2.68 | 1.4M | 16 | 39B |
HUM Dividend-Like Income Using Covered Calls
With HUM at 327.98, 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% | 9.84 | 2.7 |
5% | 16.40 | 4.5 |
10% | 32.80 | 9.0 |
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 HUM Using Covered Calls | ||||||
---|---|---|---|---|---|---|
Expiration | Strike | Call Bid | Days | Cents/Day | Upside Potential | |
Apr 26 | 330.00 | 8.60 | 4 | 177.8 | 0.00 (0.0%) | |
May 3 | 330.00 | 9.30 | 11 | 71.0 | 0.00 (0.0%) |
5% Yield On HUM Using Covered Calls | ||||||
---|---|---|---|---|---|---|
Expiration | Strike | Call Bid | Days | Cents/Day | Upside Potential | |
Apr 26 | 330.00 | 8.60 | 4 | 177.8 | 0.00 (0.0%) | |
May 3 | 330.00 | 9.30 | 11 | 71.0 | 0.00 (0.0%) |
10% Yield On HUM Using Covered Calls | ||||||
---|---|---|---|---|---|---|
Expiration | Strike | Call Bid | Days | Cents/Day | Upside Potential | |
Apr 26 | 330.00 | 8.60 | 4 | 177.8 | 0.00 (0.0%) | |
May 3 | 330.00 | 9.30 | 11 | 71.0 | 0.00 (0.0%) |
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Top 10 Open Interest For May 17 Expiration | Top 5 High Yield | |||||
---|---|---|---|---|---|---|
1. | IWM dividend | 6. | KWEB dividend | 1. | CIFR dividend | |
2. | HYG dividend | 7. | EEM dividend | 2. | FSLY dividend | |
3. | SPY dividend | 8. | TSLA dividend | 3. | ENPH dividend | |
4. | QQQ dividend | 9. | SLV dividend | 4. | CGC dividend | |
5. | FXI dividend | 10. | EWZ dividend | 5. | SNAP dividend |
Want more examples? HUGE Dividend | HUN Dividend