HY Dividend Type Payments
Although HY has no upcoming (meaning, Board-approved and announced) dividends, you can sell covered calls on Hyster-Yale, Inc. Class A common stock to create 12 extra dividend type payments per year to boost its yield. Let's look at some recent prices (last updated Thu 4:16 PM ET):
| Hyster-Yale, Inc. Class A common stock (HY) |
|---|
| Bid |
Ask |
Last |
Change |
Volume |
P/E |
Market Cap |
| 36.00 |
38.69 |
37.21 |
+1.12 |
69K |
29 |
0.6B |
HY Dividend-Like Income Using Covered Calls
With HY at 37.21, 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% |
1.12 |
0.3 |
| 5% |
1.86 |
0.5 |
| 10% |
3.72 |
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 HY Using Covered Calls |
|---|
| Expiration |
Strike |
Call Bid |
Days |
Cents/Day |
Upside Potential |
| Dec 19 |
40.00 |
0.85 |
58 |
1.5 |
1.31 (3.5%) |
| Mar 20 |
40.00 |
0.50 |
149 |
0.3 |
1.31 (3.5%) |
| 5% Yield On HY Using Covered Calls |
|---|
| Expiration |
Strike |
Call Bid |
Days |
Cents/Day |
Upside Potential |
| Dec 19 |
40.00 |
0.85 |
58 |
1.5 |
1.31 (3.5%) |
| 10% Yield On HY Using Covered Calls |
|---|
| Expiration |
Strike |
Call Bid |
Days |
Cents/Day |
Upside Potential |
| Dec 19 |
40.00 |
0.85 |
58 |
1.5 |
1.31 (3.5%) |
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