HFWA Dividend Type Payments

Heritage Financial Corporation dividend

Although HFWA has no upcoming (meaning, Board-approved and announced) dividends, you can sell covered calls on Heritage Financial Corporation to create 12 extra dividend type payments per year to boost its yield. Let's look at some recent prices (last updated Wed 1:10 PM ET):

Heritage Financial Corporation (HFWA)
Bid Ask Last Change Volume P/E Market Cap
23.80 23.85 23.86 +0.01 32K 22 0.8B

HFWA Dividend-Like Income Using Covered Calls

With HFWA at 23.86, 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% 0.72 0.2
5% 1.19 0.3
10% 2.39 0.7

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 HFWA Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Jun 20 25.00 0.95 164 0.6 1.15 (4.8%)
Mar 21 25.00 0.30 73 0.4 1.15 (4.8%)
5% Yield On HFWA Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Jun 20 25.00 0.95 164 0.6 1.15 (4.8%)
Mar 21 25.00 0.30 73 0.4 1.15 (4.8%)

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