RH Dividend Type Payments

RH dividend

Although RH has no upcoming (meaning, Board-approved and announced) dividends, you can sell covered calls on RH 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):

RH (RH)
Bid Ask Last Change Volume P/E Market Cap
126.96 131.93 127.12 -2.34 1.1M 28 2.9B

RH Dividend-Like Income Using Covered Calls

With RH at 127.12, here's a table showing how big the annual "dividend" (ie. 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% 3.81 1.0
5% 6.36 1.7
10% 12.71 3.5

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 RH Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Oct 19 137.00 0.05 3 1.7 5.07 (4.0%)
Oct 26 144.00 0.15 10 1.5 12.07 (9.5%)
5% Yield On RH Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Oct 19 135.00 0.15 3 5.0 3.07 (2.4%)
Oct 26 143.00 0.20 10 2.0 11.07 (8.7%)
10% Yield On RH Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Oct 19 135.00 0.15 3 5.0 3.07 (2.4%)
Oct 26 140.00 0.45 10 4.5 8.07 (6.3%)

Want to increase dividends with covered calls?  Sign Up For A Free Trial

 
Top 10 Open Interest For Oct 19 Expiration     Top 5 High Yield
1.SPY dividend 6.PBR dividend   1.CLVS dividend
2.SPX dividend 7.MU dividend   2.SKX dividend
3.QQQ dividend 8.FXI dividend   3.CLF dividend
4.EEM dividend 9.IWM dividend   4.CRBP dividend
5.BAC dividend 10.AMD dividend   5.TLRY dividend

Want more examples? RGS Dividend | RHI Dividend