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 Thu 9:45 AM ET):
| Houlihan Lokey, Inc. Class A (HLI) |
|---|
| Bid |
Ask |
Last |
Change |
Volume |
P/E |
Market Cap |
| 155.66 |
157.75 |
156.71 |
+1.20 |
9K |
30 |
11B |
HLI Dividend-Like Income Using Covered Calls
With HLI at 156.71, 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% |
4.70 |
1.3 |
| 5% |
7.84 |
2.1 |
| 10% |
15.67 |
4.3 |
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 |
| May 16 |
160.00 |
2.30 |
23 |
10.0 |
2.25 (1.4%) |
| Sep 19 |
160.00 |
9.30 |
149 |
6.2 |
2.25 (1.4%) |
| 5% Yield On HLI Using Covered Calls |
|---|
| Expiration |
Strike |
Call Bid |
Days |
Cents/Day |
Upside Potential |
| May 16 |
160.00 |
2.30 |
23 |
10.0 |
2.25 (1.4%) |
| Sep 19 |
160.00 |
9.30 |
149 |
6.2 |
2.25 (1.4%) |
| 10% Yield On HLI Using Covered Calls |
|---|
| Expiration |
Strike |
Call Bid |
Days |
Cents/Day |
Upside Potential |
| May 16 |
160.00 |
2.30 |
23 |
10.0 |
2.25 (1.4%) |
| Sep 19 |
160.00 |
9.30 |
149 |
6.2 |
2.25 (1.4%) |
Want to increase dividends with covered calls? Sign Up For A Free Trial
