HST Dividend

Although HST has a dividend of 0.20 with an ex-dividend date of Jun 30, 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 Thu 11:40 AM ET):

Host Hotels & Resorts, Inc. (HST)
Bid	Ask	Last	Change	Volume	P/E	Market Cap
15.61	15.62	15.62	+0.12	1.1M	16	11B

HST Dividend-Like Income Using Covered Calls

With HST at 15.62, 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%	0.47	0.1
5%	0.78	0.2
10%	1.56	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	16.00	0.40	51	0.8	0.38 (2.4%)
Oct 17	16.00	0.65	114	0.6	0.38 (2.4%)

5% Yield On HST Using Covered Calls
Expiration	Strike	Call Bid	Days	Cents/Day	Upside Potential
Aug 15	16.00	0.40	51	0.8	0.38 (2.4%)
Oct 17	16.00	0.65	114	0.6	0.38 (2.4%)

10% Yield On HST Using Covered Calls
Expiration	Strike	Call Bid	Days	Cents/Day	Upside Potential
Aug 15	16.00	0.40	51	0.8	0.38 (2.4%)
Oct 17	16.00	0.65	114	0.6	0.38 (2.4%)

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Want more examples? HSMV Dividend | HSTM Dividend