HLNE Dividend
Although HLNE has a dividend of 0.49 with an ex-dividend date of Mar 14, you can sell covered calls on Hamilton Lane Incorporated - Class A 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):
| Hamilton Lane Incorporated - Class A (HLNE) |
|---|
| Bid |
Ask |
Last |
Change |
Volume |
P/E |
Market Cap |
| 119.02 |
160.00 |
156.32 |
+4.67 |
602K |
28 |
8.4B |
HLNE Dividend-Like Income Using Covered Calls
With HLNE at 156.32, 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% |
4.69 |
1.3 |
| 5% |
7.82 |
2.1 |
| 10% |
15.63 |
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 HLNE Using Covered Calls |
|---|
| Expiration |
Strike |
Call Bid |
Days |
Cents/Day |
Upside Potential |
| Aug 15 |
160.00 |
10.10 |
169 |
6.0 |
0.00 (0.0%) |
| May 16 |
160.00 |
5.20 |
78 |
6.7 |
0.00 (0.0%) |
| 5% Yield On HLNE Using Covered Calls |
|---|
| Expiration |
Strike |
Call Bid |
Days |
Cents/Day |
Upside Potential |
| Aug 15 |
160.00 |
10.10 |
169 |
6.0 |
0.00 (0.0%) |
| May 16 |
160.00 |
5.20 |
78 |
6.7 |
0.00 (0.0%) |
| 10% Yield On HLNE Using Covered Calls |
|---|
| Expiration |
Strike |
Call Bid |
Days |
Cents/Day |
Upside Potential |
| Aug 15 |
160.00 |
10.10 |
169 |
6.0 |
0.00 (0.0%) |
| May 16 |
160.00 |
5.20 |
78 |
6.7 |
0.00 (0.0%) |
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