HNI Dividend Type Payments
Although HNI has no upcoming (meaning, Board-approved and announced) dividends, you can sell covered calls on HNI Corporation 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):
| HNI Corporation (HNI) | ||||||
|---|---|---|---|---|---|---|
| Bid | Ask | Last | Change | Volume | P/E | Market Cap |
| 44.65 | 47.66 | 46.59 | +0.31 | 473K | 16 | 2.2B |
HNI Dividend-Like Income Using Covered Calls
With HNI at 46.59, 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% | 1.40 | 0.4 |
| 5% | 2.33 | 0.6 |
| 10% | 4.66 | 1.3 |
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 HNI Using Covered Calls | ||||||
|---|---|---|---|---|---|---|
| Expiration | Strike | Call Bid | Days | Cents/Day | Upside Potential | |
| Oct 17 | 50.00 | 1.15 | 232 | 0.5 | 2.34 (5.0%) | |
| Jul 18 | 50.00 | 0.55 | 141 | 0.4 | 2.34 (5.0%) | |
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| Top 10 Open Interest For Mar 21 Expiration | Top 5 High Yield | |||||
|---|---|---|---|---|---|---|
| 1. | NVDA dividend | 6. | KWEB dividend | 1. | BBAI dividend | |
| 2. | SPY dividend | 7. | QQQ dividend | 2. | TGTX dividend | |
| 3. | FXI dividend | 8. | INTC dividend | 3. | CIFR dividend | |
| 4. | IWM dividend | 9. | TLT dividend | 4. | WOLF dividend | |
| 5. | EEM dividend | 10. | SLV dividend | 5. | GAP dividend | |
Want more examples? HMY Dividend | HNRG Dividend
