MHO Dividend Type Payments

M/I Homes, Inc. dividend

Although MHO has no upcoming (meaning, Board-approved and announced) dividends, you can sell covered calls on M/I Homes, 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):

M/I Homes, Inc. (MHO)
Bid Ask Last Change Volume P/E Market Cap
119.38 131.06 126.38 +2.25 262K 6.7 3.4B

MHO Dividend-Like Income Using Covered Calls

With MHO at 126.38, 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% 3.79 1.0
5% 6.32 1.7
10% 12.64 3.5

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 MHO Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Apr 17 135.00 5.50 95 5.8 3.94 (3.1%)
Jul 18 135.00 10.80 187 5.8 3.94 (3.1%)
5% Yield On MHO Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Apr 17 135.00 5.50 95 5.8 3.94 (3.1%)
Jul 18 135.00 10.80 187 5.8 3.94 (3.1%)
10% Yield On MHO Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Apr 17 135.00 5.50 95 5.8 3.94 (3.1%)
Jul 18 135.00 10.80 187 5.8 3.94 (3.1%)

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