HLI Dividend Type Payments
Although HLI has no upcoming (meaning, Board-approved and announced) dividends, you can sell covered calls on Houlihan Lokey, Inc. Class A 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):
| Houlihan Lokey, Inc. Class A (HLI) |
|---|
| Bid |
Ask |
Last |
Change |
Volume |
P/E |
Market Cap |
| 176.73 |
199.00 |
191.39 |
+3.33 |
310K |
32 |
13B |
HLI Dividend-Like Income Using Covered Calls
With HLI at 191.39, 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% |
5.74 |
1.6 |
| 5% |
9.57 |
2.6 |
| 10% |
19.14 |
5.2 |
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 HLI Using Covered Calls |
|---|
| Expiration |
Strike |
Call Bid |
Days |
Cents/Day |
Upside Potential |
| Dec 19 |
200.00 |
3.60 |
68 |
5.3 |
1.00 (0.5%) |
| Nov 21 |
200.00 |
2.45 |
40 |
6.1 |
1.00 (0.5%) |
| 5% Yield On HLI Using Covered Calls |
|---|
| Expiration |
Strike |
Call Bid |
Days |
Cents/Day |
Upside Potential |
| Dec 19 |
200.00 |
3.60 |
68 |
5.3 |
1.00 (0.5%) |
| Nov 21 |
200.00 |
2.45 |
40 |
6.1 |
1.00 (0.5%) |
| 10% Yield On HLI Using Covered Calls |
|---|
| Expiration |
Strike |
Call Bid |
Days |
Cents/Day |
Upside Potential |
| Dec 19 |
200.00 |
3.60 |
68 |
5.3 |
1.00 (0.5%) |
| Nov 21 |
200.00 |
2.45 |
40 |
6.1 |
1.00 (0.5%) |
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