GAIN Dividend
Although GAIN has a dividend of 0.08 with an ex-dividend date of May 16, you can sell covered calls on Gladstone Investment Corporation - Business Development Company 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):
Gladstone Investment Corporation - Business Development Company (GAIN) | ||||||
---|---|---|---|---|---|---|
Bid | Ask | Last | Change | Volume | P/E | Market Cap |
14.11 | 14.26 | 14.14 | -0.08 | 53K | 4.4 | 0.5B |
GAIN Dividend-Like Income Using Covered Calls
With GAIN at 14.14, 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% | 0.42 | 0.1 |
5% | 0.71 | 0.2 |
10% | 1.41 | 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:
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Top 10 Open Interest For May 17 Expiration | Top 5 High Yield | |||||
---|---|---|---|---|---|---|
1. | IWM dividend | 6. | EEM dividend | 1. | SNAP dividend | |
2. | HYG dividend | 7. | KWEB dividend | 2. | META dividend | |
3. | QQQ dividend | 8. | TSLA dividend | 3. | FSLY dividend | |
4. | SPY dividend | 9. | SLV dividend | 4. | CVNA dividend | |
5. | FXI dividend | 10. | EWZ dividend | 5. | PINS dividend |
Want more examples? GAIA Dividend | GAL Dividend