HLI Dividend Type Payments
Although HLI has no upcoming (meaning, Board-approved and announced) dividends, you can sell covered calls on Houlihan Lokey, Inc. 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 2:40 PM ET):
| Houlihan Lokey, Inc. Class A (HLI) |
|---|
| Bid |
Ask |
Last |
Change |
Volume |
P/E |
Market Cap |
| 194.06 |
194.38 |
194.28 |
+1.28 |
214K |
32 |
14B |
HLI Dividend-Like Income Using Covered Calls
With HLI at 194.28, 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% |
5.83 |
1.6 |
| 5% |
9.71 |
2.7 |
| 10% |
19.43 |
5.3 |
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 HLI Using Covered Calls |
|---|
| Expiration |
Strike |
Call Bid |
Days |
Cents/Day |
Upside Potential |
| Dec 19 |
195.00 |
5.90 |
59 |
10.0 |
0.62 (0.3%) |
| Nov 21 |
195.00 |
4.00 |
31 |
12.9 |
0.62 (0.3%) |
| 5% Yield On HLI Using Covered Calls |
|---|
| Expiration |
Strike |
Call Bid |
Days |
Cents/Day |
Upside Potential |
| Dec 19 |
195.00 |
5.90 |
59 |
10.0 |
0.62 (0.3%) |
| Nov 21 |
195.00 |
4.00 |
31 |
12.9 |
0.62 (0.3%) |
| 10% Yield On HLI Using Covered Calls |
|---|
| Expiration |
Strike |
Call Bid |
Days |
Cents/Day |
Upside Potential |
| Dec 19 |
195.00 |
5.90 |
59 |
10.0 |
0.62 (0.3%) |
| Nov 21 |
195.00 |
4.00 |
31 |
12.9 |
0.62 (0.3%) |
Want to increase dividends with covered calls? Sign Up For A Free Trial
