HOG Dividend Type Payments

Harley-Davidson, Inc. dividend

Although HOG has no upcoming (meaning, Board-approved and announced) dividends, you can sell covered calls on Harley-Davidson, Inc. to create 12 extra dividend type payments per year to boost its yield. Let's look at some recent prices (last updated Thu 4:16 PM ET):

Harley-Davidson, Inc. (HOG)
Bid Ask Last Change Volume P/E Market Cap
23.89 24.14 23.99 -1.30 1.6M 9.1 3.1B

HOG Dividend-Like Income Using Covered Calls

With HOG at 23.99, 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% 0.72 0.2
5% 1.20 0.3
10% 2.40 0.7

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 HOG Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Aug 1 24.50 1.00 9 11.1 0.36 (1.5%)
Aug 8 24.50 1.10 16 6.9 0.36 (1.5%)
5% Yield On HOG Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Aug 1 24.50 1.00 9 11.1 0.36 (1.5%)
Aug 8 24.50 1.10 16 6.9 0.36 (1.5%)
10% Yield On HOG Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Aug 1 24.50 1.00 9 11.1 0.36 (1.5%)
Aug 8 24.50 1.10 16 6.9 0.36 (1.5%)

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