HTH Dividend Type Payments
Although HTH has no upcoming (meaning, Board-approved and announced) dividends, you can sell covered calls on Hilltop Holdings Inc. to create 12 extra dividend type payments per year to boost its yield. Let's look at some recent prices (last updated Thu 10:05 AM ET):
| Hilltop Holdings Inc. (HTH) | ||||||
|---|---|---|---|---|---|---|
| Bid | Ask | Last | Change | Volume | P/E | Market Cap |
| 31.78 | 31.86 | 31.84 | +0.36 | 17K | 19 | 2.1B |
HTH Dividend-Like Income Using Covered Calls
With HTH at 31.84, 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% | 0.96 | 0.3 |
| 5% | 1.59 | 0.4 |
| 10% | 3.18 | 0.9 |
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:
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| Top 10 Open Interest For Feb 21 Expiration | Top 5 High Yield | |||||
|---|---|---|---|---|---|---|
| 1. | NVDA dividend | 6. | FXI dividend | 1. | TWLO dividend | |
| 2. | SPY dividend | 7. | QQQ dividend | 2. | ABNB dividend | |
| 3. | TLT dividend | 8. | SLV dividend | 3. | NBIS dividend | |
| 4. | IWM dividend | 9. | KWEB dividend | 4. | AUR dividend | |
| 5. | TSLA dividend | 10. | AMD dividend | 5. | MRNA dividend | |
Want more examples? HTGC Dividend | HTHT Dividend
