GIC Dividend Type Payments
Although GIC has no upcoming (meaning, Board-approved and announced) dividends, you can sell covered calls on Global Industrial Company 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):
| Global Industrial Company (GIC) | ||||||
|---|---|---|---|---|---|---|
| Bid | Ask | Last | Change | Volume | P/E | Market Cap |
| 39.99 | 41.84 | 40.19 | -0.26 | 40K | 22 | 1.5B |
GIC Dividend-Like Income Using Covered Calls
With GIC at 40.19, 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% | 1.21 | 0.3 |
| 5% | 2.01 | 0.6 |
| 10% | 4.02 | 1.1 |
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 GIC Using Covered Calls | ||||||
|---|---|---|---|---|---|---|
| Expiration | Strike | Call Bid | Days | Cents/Day | Upside Potential | |
| May 17 | 45.00 | 0.10 | 22 | 0.5 | 3.16 (7.9%) | |
| Sep 20 | 45.00 | 1.35 | 148 | 0.9 | 3.16 (7.9%) | |
| 5% Yield On GIC Using Covered Calls | ||||||
|---|---|---|---|---|---|---|
| Expiration | Strike | Call Bid | Days | Cents/Day | Upside Potential | |
| Sep 20 | 45.00 | 1.35 | 148 | 0.9 | 3.16 (7.9%) | |
| Dec 20 | 45.00 | 2.35 | 239 | 1.0 | 3.16 (7.9%) | |
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| Top 10 Open Interest For May 17 Expiration | Top 5 High Yield | |||||
|---|---|---|---|---|---|---|
| 1. | IWM dividend | 6. | EEM dividend | 1. | WOLF dividend | |
| 2. | HYG dividend | 7. | KWEB dividend | 2. | FSLY dividend | |
| 3. | QQQ dividend | 8. | SLV dividend | 3. | ENVX dividend | |
| 4. | SPY dividend | 9. | TSLA dividend | 4. | NOVA dividend | |
| 5. | FXI dividend | 10. | NVDA dividend | 5. | COIN dividend | |
Want more examples? GIB Dividend | GIFI Dividend
