HST Dividend Type Payments
Although HST has no upcoming (meaning, Board-approved and announced) dividends, you can sell covered calls on Host Hotels & Resorts, Inc. to create 12 extra dividend type payments per year to boost its yield. Let's look at some recent prices (last updated Fri 4:16 PM ET):
Host Hotels & Resorts, Inc. (HST) | ||||||
---|---|---|---|---|---|---|
Bid | Ask | Last | Change | Volume | P/E | Market Cap |
15.95 | 16.14 | 16.14 | +0.08 | 5.0M | 17 | 11B |
HST Dividend-Like Income Using Covered Calls
With HST at 16.14, 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% | 0.48 | 0.1 |
5% | 0.81 | 0.2 |
10% | 1.61 | 0.4 |
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 HST Using Covered Calls | ||||||
---|---|---|---|---|---|---|
Expiration | Strike | Call Bid | Days | Cents/Day | Upside Potential | |
Aug 15 | 17.00 | 0.15 | 29 | 0.5 | 0.86 (5.3%) | |
Oct 17 | 17.00 | 0.45 | 92 | 0.5 | 0.86 (5.3%) |
5% Yield On HST Using Covered Calls | ||||||
---|---|---|---|---|---|---|
Expiration | Strike | Call Bid | Days | Cents/Day | Upside Potential | |
Aug 15 | 17.00 | 0.15 | 29 | 0.5 | 0.86 (5.3%) | |
Oct 17 | 17.00 | 0.45 | 92 | 0.5 | 0.86 (5.3%) |
10% Yield On HST Using Covered Calls | ||||||
---|---|---|---|---|---|---|
Expiration | Strike | Call Bid | Days | Cents/Day | Upside Potential | |
Aug 15 | 17.00 | 0.15 | 29 | 0.5 | 0.86 (5.3%) | |
Oct 17 | 17.00 | 0.45 | 92 | 0.5 | 0.86 (5.3%) |
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Top 10 Open Interest For Aug 15 Expiration | Top 5 High Yield | |||||
---|---|---|---|---|---|---|
1. | SLV dividend | 6. | IBIT dividend | 1. | CELC dividend | |
2. | NVDA dividend | 7. | TSLA dividend | 2. | CRML dividend | |
3. | GLD dividend | 8. | AMZN dividend | 3. | NFE dividend | |
4. | IWM dividend | 9. | AAPL dividend | 4. | ARES dividend | |
5. | SPY dividend | 10. | SMCI dividend | 5. | MBX dividend |
Want more examples? HSMV Dividend | HSTM Dividend