GIL Dividend Type Payments

Gildan Activewear, Inc. Class A Sub. Vot. dividend

Although GIL has no upcoming (meaning, Board-approved and announced) dividends, you can sell covered calls on Gildan Activewear, Inc. Class A Sub. Vot. to create 12 extra dividend type payments per year to boost its yield. Let's look at some recent prices (last updated Tue 4:16 PM ET):

Gildan Activewear, Inc. Class A Sub. Vot. (GIL)
Bid Ask Last Change Volume P/E Market Cap
45.50 49.66 47.21 -0.65 305K 19 11B

GIL Dividend-Like Income Using Covered Calls

With GIL at 47.21, 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% 1.42 0.4
5% 2.36 0.6
10% 4.72 1.3

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 GIL Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Sep 19 50.00 1.30 95 1.4 0.34 (0.7%)
Dec 19 50.00 1.05 186 0.6 0.34 (0.7%)
5% Yield On GIL Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Sep 19 50.00 1.30 95 1.4 0.34 (0.7%)
10% Yield On GIL Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Sep 19 50.00 1.30 95 1.4 0.34 (0.7%)

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