HEI Dividend Type Payments

Heico Corporation dividend

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

Heico Corporation (HEI)
Bid Ask Last Change Volume P/E Market Cap
267.31 282.04 270.41 -6.63 756K 81 38B

HEI Dividend-Like Income Using Covered Calls

With HEI at 270.41, 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% 8.11 2.2
5% 13.52 3.7
10% 27.04 7.4

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 HEI Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Dec 20 290.00 1.65 36 4.6 7.96 (2.9%)
May 16 290.00 14.20 183 7.8 7.96 (2.9%)
5% Yield On HEI Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Dec 20 290.00 1.65 36 4.6 7.96 (2.9%)
May 16 290.00 14.20 183 7.8 7.96 (2.9%)
10% Yield On HEI Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
May 16 290.00 14.20 183 7.8 7.96 (2.9%)
Jan 17 290.00 5.00 64 7.8 7.96 (2.9%)

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Want more examples? HEFA Dividend | HELE Dividend