HCAT Dividend Type Payments
Although HCAT has no upcoming (meaning, Board-approved and announced) dividends, you can sell covered calls on Health Catalyst, Inc - Common stock to create 12 extra dividend type payments per year to boost its yield. Let's look at some recent prices (last updated Fri 4:16 PM ET):
| Health Catalyst, Inc - Common stock (HCAT) |
|---|
| Bid |
Ask |
Last |
Change |
Volume |
P/E |
Market Cap |
| 6.62 |
7.30 |
7.09 |
+0.12 |
871K |
- |
0.4B |
HCAT Dividend-Like Income Using Covered Calls
With HCAT at 7.09, 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% |
0.21 |
0.1 |
| 5% |
0.35 |
0.1 |
| 10% |
0.71 |
0.2 |
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 HCAT Using Covered Calls |
|---|
| Expiration |
Strike |
Call Bid |
Days |
Cents/Day |
Upside Potential |
| Jan 17 |
7.50 |
0.30 |
29 |
1.0 |
0.20 (2.8%) |
| Apr 17 |
7.50 |
0.10 |
119 |
0.1 |
0.20 (2.8%) |
| 5% Yield On HCAT Using Covered Calls |
|---|
| Expiration |
Strike |
Call Bid |
Days |
Cents/Day |
Upside Potential |
| Jan 17 |
7.50 |
0.30 |
29 |
1.0 |
0.20 (2.8%) |
| Jul 18 |
7.50 |
1.15 |
211 |
0.5 |
0.20 (2.8%) |
| 10% Yield On HCAT Using Covered Calls |
|---|
| Expiration |
Strike |
Call Bid |
Days |
Cents/Day |
Upside Potential |
| Jan 17 |
7.50 |
0.30 |
29 |
1.0 |
0.20 (2.8%) |
| Jul 18 |
7.50 |
1.15 |
211 |
0.5 |
0.20 (2.8%) |
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