DSX Dividend Type Payments

Diana Shipping, Inc dividend

Although DSX has no upcoming (meaning, Board-approved and announced) dividends, you can sell covered calls on Diana Shipping, Inc to create 12 extra dividend type payments per year to boost its yield. Let's look at some recent prices (last updated Tue 4:16 PM ET):

Diana Shipping, Inc (DSX)
Bid Ask Last Change Volume P/E Market Cap
3.38 3.48 3.43 +0.01 275K - 0.0B

DSX Dividend-Like Income Using Covered Calls

With DSX at 3.43, here's a table showing how big the annual "dividend" (ie. 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% 0.10 0.0
5% 0.17 0.0
10% 0.34 0.1

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 DSX Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Mar 15 4.00 0.10 95 0.1 0.52 (15.2%)
Jun 21 4.00 0.20 193 0.1 0.52 (15.2%)
5% Yield On DSX Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Mar 15 4.00 0.10 95 0.1 0.52 (15.2%)
Jun 21 4.00 0.20 193 0.1 0.52 (15.2%)
10% Yield On DSX Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Mar 15 4.00 0.10 95 0.1 0.52 (15.2%)
Jun 21 4.00 0.20 193 0.1 0.52 (15.2%)

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