H Dividend

Hyatt Hotels Corporation Class A dividend

Although H has a dividend of 0.15 with an ex-dividend date of Feb 28, you can sell covered calls on Hyatt Hotels Corporation Class A 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):

Hyatt Hotels Corporation Class A (H)
Bid Ask Last Change Volume P/E Market Cap
137.50 144.70 139.82 +1.25 588K 11 13B

H Dividend-Like Income Using Covered Calls

With H at 139.82, 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% 4.19 1.1
5% 6.99 1.9
10% 13.98 3.8

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 H Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Aug 15 145.00 9.90 171 5.8 0.30 (0.2%)
May 16 145.00 5.50 80 6.9 0.30 (0.2%)
5% Yield On H Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Aug 15 145.00 9.90 171 5.8 0.30 (0.2%)
May 16 145.00 5.50 80 6.9 0.30 (0.2%)
10% Yield On H Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Aug 15 145.00 9.90 171 5.8 0.30 (0.2%)
May 16 145.00 5.50 80 6.9 0.30 (0.2%)

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