HY Dividend
Although HY has a dividend of 0.35 with an ex-dividend date of Feb 28, you can sell covered calls on Hyster-Yale, Inc. Class A common stock 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):
| Hyster-Yale, Inc. Class A common stock (HY) |
|---|
| Bid |
Ask |
Last |
Change |
Volume |
P/E |
Market Cap |
| 49.12 |
53.71 |
52.07 |
-1.37 |
58K |
6.0 |
0.9B |
HY Dividend-Like Income Using Covered Calls
With HY at 52.07, 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% |
1.56 |
0.4 |
| 5% |
2.60 |
0.7 |
| 10% |
5.21 |
1.4 |
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 HY Using Covered Calls |
|---|
| Expiration |
Strike |
Call Bid |
Days |
Cents/Day |
Upside Potential |
| Sep 19 |
55.00 |
2.05 |
211 |
1.0 |
1.29 (2.5%) |
| Jun 20 |
55.00 |
2.60 |
120 |
2.2 |
1.29 (2.5%) |
| 5% Yield On HY Using Covered Calls |
|---|
| Expiration |
Strike |
Call Bid |
Days |
Cents/Day |
Upside Potential |
| Sep 19 |
55.00 |
2.05 |
211 |
1.0 |
1.29 (2.5%) |
| Jun 20 |
55.00 |
2.60 |
120 |
2.2 |
1.29 (2.5%) |
| 10% Yield On HY Using Covered Calls |
|---|
| Expiration |
Strike |
Call Bid |
Days |
Cents/Day |
Upside Potential |
| Jun 20 |
55.00 |
2.60 |
120 |
2.2 |
1.29 (2.5%) |
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