HRZN Dividend
Although HRZN has a dividend of 0.11 with an ex-dividend date of Nov 17, you can sell covered calls on Horizon Technology Finance Corporation to create 12 extra dividend type payments per year to boost its yield. Let's look at some recent prices (last updated Wed 4:16 PM ET):
| Horizon Technology Finance Corporation (HRZN) | ||||||
|---|---|---|---|---|---|---|
| Bid | Ask | Last | Change | Volume | P/E | Market Cap |
| 6.50 | 6.65 | 6.57 | +0.56 | 2.4M | - | 0.3B |
HRZN Dividend-Like Income Using Covered Calls
With HRZN at 6.57, 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% | 0.20 | 0.1 |
| 5% | 0.33 | 0.1 |
| 10% | 0.66 | 0.2 |
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 HRZN Using Covered Calls | ||||||
|---|---|---|---|---|---|---|
| Expiration | Strike | Call Bid | Days | Cents/Day | Upside Potential | |
| Jan 16 | 7.50 | 0.05 | 80 | 0.1 | 0.85 (12.9%) | |
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| Top 10 Open Interest For Nov 21 Expiration | Top 5 High Yield | |||||
|---|---|---|---|---|---|---|
| 1. | IBIT dividend | 6. | INTC dividend | 1. | IREN dividend | |
| 2. | KVUE dividend | 7. | TLT dividend | 2. | GHRS dividend | |
| 3. | NVDA dividend | 8. | EEM dividend | 3. | ENVX dividend | |
| 4. | SLV dividend | 9. | HYG dividend | 4. | JOBY dividend | |
| 5. | GLD dividend | 10. | QQQ dividend | 5. | SOUN dividend | |
Want more examples? HRTX Dividend | HSBC Dividend
