HMN Dividend Type Payments

Horace Mann Educators Corporation dividend

Although HMN has no upcoming (meaning, Board-approved and announced) dividends, you can sell covered calls on Horace Mann Educators Corporation to create 12 extra dividend type payments per year to boost its yield. Let's look at some recent prices (last updated Thu 10:40 AM ET):

Horace Mann Educators Corporation (HMN)
Bid Ask Last Change Volume P/E Market Cap
39.51 39.68 39.59 -0.10 10K 16 1.6B

HMN Dividend-Like Income Using Covered Calls

With HMN at 39.59, 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% 1.19 0.3
5% 1.98 0.5
10% 3.96 1.1

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 HMN Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Aug 15 40.00 1.50 233 0.6 0.32 (0.8%)
May 16 40.00 0.50 142 0.4 0.32 (0.8%)
5% Yield On HMN Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Aug 15 40.00 1.50 233 0.6 0.32 (0.8%)

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