GIII Dividend Type Payments

Although GIII has no upcoming (meaning, Board-approved and announced) dividends, you can sell covered calls on G-III Apparel Group, Ltd 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):

G-III Apparel Group, Ltd (GIII)
Bid Ask Last Change Volume P/E Market Cap
34.40 39.90 35.16 -0.37 917K 16 1.8B

GIII Dividend-Like Income Using Covered Calls

With GIII at 35.16, 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% 1.05 0.3
5% 1.76 0.5
10% 3.52 1.0

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 GIII Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Apr 18 45.00 0.10 30 0.3 5.10 (14.5%)
May 17 40.00 0.95 59 1.6 0.10 (0.3%)
5% Yield On GIII Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Apr 18 40.00 0.60 30 2.0 0.10 (0.3%)
May 17 40.00 0.95 59 1.6 0.10 (0.3%)
10% Yield On GIII Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Apr 18 40.00 0.60 30 2.0 0.10 (0.3%)
May 17 40.00 0.95 59 1.6 0.10 (0.3%)

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Want more examples? GII Dividend | GIL Dividend