HII Dividend
Although HII has a dividend of 1.35 with an ex-dividend date of Aug 29, you can sell covered calls on Huntington Ingalls Industries, Inc. to create 12 extra dividend type payments per year to boost its yield. Let's look at some recent prices (last updated Mon 10:50 AM ET):
| Huntington Ingalls Industries, Inc. (HII) | ||||||
|---|---|---|---|---|---|---|
| Bid | Ask | Last | Change | Volume | P/E | Market Cap |
| 271.18 | 271.97 | 271.38 | +1.55 | 63K | 20 | 11B |
HII Dividend-Like Income Using Covered Calls
With HII at 271.38, 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% | 8.14 | 2.2 |
| 5% | 13.57 | 3.7 |
| 10% | 27.14 | 7.4 |
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 HII Using Covered Calls | ||||||
|---|---|---|---|---|---|---|
| Expiration | Strike | Call Bid | Days | Cents/Day | Upside Potential | |
| Aug 15 | 280.00 | 2.15 | 12 | 17.9 | 8.03 (3.0%) | |
| Sep 19 | 280.00 | 6.70 | 47 | 14.3 | 8.03 (3.0%) | |
| 5% Yield On HII Using Covered Calls | ||||||
|---|---|---|---|---|---|---|
| Expiration | Strike | Call Bid | Days | Cents/Day | Upside Potential | |
| Aug 15 | 280.00 | 2.15 | 12 | 17.9 | 8.03 (3.0%) | |
| Sep 19 | 280.00 | 6.70 | 47 | 14.3 | 8.03 (3.0%) | |
| 10% Yield On HII Using Covered Calls | ||||||
|---|---|---|---|---|---|---|
| Expiration | Strike | Call Bid | Days | Cents/Day | Upside Potential | |
| Aug 15 | 280.00 | 2.15 | 12 | 17.9 | 8.03 (3.0%) | |
| Sep 19 | 280.00 | 6.70 | 47 | 14.3 | 8.03 (3.0%) | |
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| Top 10 Open Interest For Aug 15 Expiration | Top 5 High Yield | |||||
|---|---|---|---|---|---|---|
| 1. | SLV dividend | 6. | GLD dividend | 1. | UPST dividend | |
| 2. | NVDA dividend | 7. | TSLA dividend | 2. | GRPN dividend | |
| 3. | IWM dividend | 8. | AMZN dividend | 3. | MBX dividend | |
| 4. | SPY dividend | 9. | QQQ dividend | 4. | PTON dividend | |
| 5. | IBIT dividend | 10. | INTC dividend | 5. | APP dividend | |
Want more examples? HIG Dividend | HIMX Dividend
