HES Dividend Type Payments

Hess Corporation dividend

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

Hess Corporation (HES)
Bid Ask Last Change Volume P/E Market Cap
142.09 147.75 145.64 +0.58 1.9M 17 45B

HES Dividend-Like Income Using Covered Calls

With HES at 145.64, 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% 4.37 1.2
5% 7.28 2.0
10% 14.56 4.0

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 HES Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Dec 6 150.00 0.55 22 2.5 2.25 (1.5%)
Dec 20 150.00 1.35 36 3.8 2.25 (1.5%)
5% Yield On HES Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Dec 6 150.00 0.55 22 2.5 2.25 (1.5%)
Dec 20 150.00 1.35 36 3.8 2.25 (1.5%)
10% Yield On HES Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Jan 17 150.00 3.10 64 4.8 2.25 (1.5%)
Feb 21 150.00 5.10 99 5.2 2.25 (1.5%)

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Want more examples? HERO Dividend | HESM Dividend