HY Dividend Type Payments
Although HY has no upcoming (meaning, Board-approved and announced) dividends, you can sell covered calls on Hyster-Yale, Inc. Class A common stock 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):
Hyster-Yale, Inc. Class A common stock (HY) |
Bid |
Ask |
Last |
Change |
Volume |
P/E |
Market Cap |
59.33 |
62.88 |
61.80 |
-0.63 |
149K |
6.2 |
1.1B |
HY Dividend-Like Income Using Covered Calls
With HY at 61.80, 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% |
1.85 |
0.5 |
5% |
3.09 |
0.8 |
10% |
6.18 |
1.7 |
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 HY Using Covered Calls |
Expiration |
Strike |
Call Bid |
Days |
Cents/Day |
Upside Potential |
Oct 18 |
65.00 |
0.70 |
29 |
2.4 |
2.12 (3.4%) |
Dec 20 |
65.00 |
2.50 |
92 |
2.7 |
2.12 (3.4%) |
5% Yield On HY Using Covered Calls |
Expiration |
Strike |
Call Bid |
Days |
Cents/Day |
Upside Potential |
Oct 18 |
65.00 |
0.70 |
29 |
2.4 |
2.12 (3.4%) |
Dec 20 |
65.00 |
2.50 |
92 |
2.7 |
2.12 (3.4%) |
10% Yield On HY Using Covered Calls |
Expiration |
Strike |
Call Bid |
Days |
Cents/Day |
Upside Potential |
Oct 18 |
65.00 |
0.70 |
29 |
2.4 |
2.12 (3.4%) |
Dec 20 |
65.00 |
2.50 |
92 |
2.7 |
2.12 (3.4%) |
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