DSL Dividend Type Payments
Although DSL has no upcoming (meaning, Board-approved and announced) dividends, you can sell covered calls on DoubleLine Income Solutions Fund Common Shares of Beneficial Interests 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):
| DoubleLine Income Solutions Fund Common Shares of Beneficial Interests (DSL) | ||||||
|---|---|---|---|---|---|---|
| Bid | Ask | Last | Change | Volume | P/E | Market Cap |
| 12.01 | 12.17 | 12.06 | +0.03 | 354K | 5.0 | 0.0B |
DSL Dividend-Like Income Using Covered Calls
With DSL at 12.06, 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% | 0.36 | 0.1 |
| 5% | 0.60 | 0.2 |
| 10% | 1.21 | 0.3 |
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:
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| Top 10 Open Interest For May 16 Expiration | Top 5 High Yield | |||||
|---|---|---|---|---|---|---|
| 1. | NVDA dividend | 6. | IWM dividend | 1. | IONQ dividend | |
| 2. | SPY dividend | 7. | FXI dividend | 2. | LYFT dividend | |
| 3. | TLT dividend | 8. | TSLA dividend | 3. | CVNA dividend | |
| 4. | QQQ dividend | 9. | GLD dividend | 4. | PCT dividend | |
| 5. | SLV dividend | 10. | INTC dividend | 5. | PINS dividend | |
Want more examples? DSI Dividend | DSTL Dividend
