CGBD Dividend Type Payments
Although CGBD has no upcoming (meaning, Board-approved and announced) dividends, you can sell covered calls on Carlyle Secured Lending, Inc. - Closed End Fund 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):
Carlyle Secured Lending, Inc. - Closed End Fund (CGBD) |
Bid |
Ask |
Last |
Change |
Volume |
P/E |
Market Cap |
17.16 |
17.23 |
17.18 |
+0.09 |
137K |
8.1 |
0.9B |
CGBD Dividend-Like Income Using Covered Calls
With CGBD at 17.18, 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% |
0.52 |
0.1 |
5% |
0.86 |
0.2 |
10% |
1.72 |
0.5 |
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 CGBD Using Covered Calls |
Expiration |
Strike |
Call Bid |
Days |
Cents/Day |
Upside Potential |
Nov 15 |
17.50 |
0.60 |
197 |
0.3 |
0.27 (1.6%) |
Aug 16 |
17.50 |
0.35 |
106 |
0.3 |
0.27 (1.6%) |
5% Yield On CGBD Using Covered Calls |
Expiration |
Strike |
Call Bid |
Days |
Cents/Day |
Upside Potential |
Nov 15 |
17.50 |
0.60 |
197 |
0.3 |
0.27 (1.6%) |
Aug 16 |
17.50 |
0.35 |
106 |
0.3 |
0.27 (1.6%) |
10% Yield On CGBD Using Covered Calls |
Expiration |
Strike |
Call Bid |
Days |
Cents/Day |
Upside Potential |
Jun 21 |
17.50 |
0.30 |
50 |
0.6 |
0.27 (1.6%) |
Want to increase dividends with covered calls? Sign Up For A Free Trial