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 Mon 3:15 PM ET):
| G-III Apparel Group, LTD. (GIII) |
|---|
| Bid |
Ask |
Last |
Change |
Volume |
P/E |
Market Cap |
| 29.59 |
29.67 |
29.63 |
-0.75 |
283K |
7.6 |
1.3B |
GIII Dividend-Like Income Using Covered Calls
With GIII at 29.63, 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% |
0.89 |
0.2 |
| 5% |
1.48 |
0.4 |
| 10% |
2.96 |
0.8 |
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 |
| Dec 19 |
30.00 |
1.75 |
12 |
14.6 |
0.33 (1.1%) |
| Jan 16 |
30.00 |
1.80 |
40 |
4.5 |
0.33 (1.1%) |
| 5% Yield On GIII Using Covered Calls |
|---|
| Expiration |
Strike |
Call Bid |
Days |
Cents/Day |
Upside Potential |
| Dec 19 |
30.00 |
1.75 |
12 |
14.6 |
0.33 (1.1%) |
| Jan 16 |
30.00 |
1.80 |
40 |
4.5 |
0.33 (1.1%) |
| 10% Yield On GIII Using Covered Calls |
|---|
| Expiration |
Strike |
Call Bid |
Days |
Cents/Day |
Upside Potential |
| Dec 19 |
30.00 |
1.75 |
12 |
14.6 |
0.33 (1.1%) |
| Jan 16 |
30.00 |
1.80 |
40 |
4.5 |
0.33 (1.1%) |
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