GBDC Dividend Type Payments
Although GBDC has no upcoming (meaning, Board-approved and announced) dividends, you can sell covered calls on Golub Capital BDC, 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):
Golub Capital BDC, Inc. - Closed End Fund (GBDC) | ||||||
---|---|---|---|---|---|---|
Bid | Ask | Last | Change | Volume | P/E | Market Cap |
16.46 | 16.78 | 16.80 | +0.21 | 719K | 8.7 | 2.8B |
GBDC Dividend-Like Income Using Covered Calls
With GBDC at 16.80, 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% | 0.50 | 0.1 |
5% | 0.84 | 0.2 |
10% | 1.68 | 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:
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Top 10 Open Interest For May 17 Expiration | Top 5 High Yield | |||||
---|---|---|---|---|---|---|
1. | HYG dividend | 6. | KWEB dividend | 1. | CVNA dividend | |
2. | IWM dividend | 7. | EEM dividend | 2. | FSLY dividend | |
3. | FXI dividend | 8. | SLV dividend | 3. | CLSK dividend | |
4. | QQQ dividend | 9. | TSLA dividend | 4. | MARA dividend | |
5. | SPY dividend | 10. | EWZ dividend | 5. | EYPT dividend |
Want more examples? GBCI Dividend | GBF Dividend