GD Dividend

General Dynamics Corp dividend

Although GD has a dividend of 0.93 with an ex-dividend date of Jan 17, you can sell covered calls on General Dynamics Corp to create 12 extra dividend type payments per year to boost its yield. Let's look at some recent prices (last updated Mon 4:16 PM ET):

General Dynamics Corp (GD)
Bid Ask Last Change Volume P/E Market Cap
163.00 184.21 172.20 +4.82 2.2M - 0.0B

GD Dividend-Like Income Using Covered Calls

With GD at 172.20, 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% 5.17 1.4
5% 8.61 2.4
10% 17.22 4.7

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 GD Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Dec 28 185.00 0.30 19 1.6 0.79 (0.5%)
Jan 4 187.50 0.45 26 1.7 3.29 (1.9%)
5% Yield On GD Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Jan 4 185.00 0.65 26 2.5 0.79 (0.5%)
Jan 11 185.00 1.10 33 3.3 0.79 (0.5%)

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Top 10 Open Interest For Dec 21 Expiration     Top 5 High Yield
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2.NVT dividend 7.MTOR dividend   2. dividend
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5.ECH dividend 10.ODFL dividend   5. dividend

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