HOG Dividend Type Payments

Harley-Davidson, Inc. dividend

Although HOG has no upcoming (meaning, Board-approved and announced) dividends, you can sell covered calls on Harley-Davidson, Inc. to create 12 extra dividend type payments per year to boost its yield. Let's look at some recent prices (last updated Mon 4:16 PM ET):

Harley-Davidson, Inc. (HOG)
Bid Ask Last Change Volume P/E Market Cap
30.36 31.18 30.70 -0.05 1.3M 6.9 3.9B

HOG Dividend-Like Income Using Covered Calls

With HOG at 30.70, 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% 0.92 0.3
5% 1.54 0.4
10% 3.07 0.8

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 HOG Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Jan 3 32.00 0.10 12 0.8 0.82 (2.7%)
Jan 10 32.00 0.25 19 1.3 0.82 (2.7%)
5% Yield On HOG Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Jan 3 32.00 0.10 12 0.8 0.82 (2.7%)
Jan 10 32.00 0.25 19 1.3 0.82 (2.7%)
10% Yield On HOG Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Jan 10 32.00 0.25 19 1.3 0.82 (2.7%)
Aug 15 32.00 3.30 236 1.4 0.82 (2.7%)

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