GIL Dividend Type Payments

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 Wed 4:16 PM ET):

Gildan Activewear, Inc. Class A Sub. Vot. (GIL)
Bid	Ask	Last	Change	Volume	P/E	Market Cap
34.63	36.38	35.64	-0.08	240K	12	7.8B

GIL Dividend-Like Income Using Covered Calls

With GIL at 35.64, 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%	1.07	0.3
5%	1.78	0.5
10%	3.56	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 GIL Using Covered Calls
Expiration	Strike	Call Bid	Days	Cents/Day	Upside Potential
May 17	37.50	0.60	24	2.5	1.12 (3.1%)
Jun 21	37.50	0.80	59	1.4	1.12 (3.1%)

5% Yield On GIL Using Covered Calls
Expiration	Strike	Call Bid	Days	Cents/Day	Upside Potential
May 17	37.50	0.60	24	2.5	1.12 (3.1%)
Jun 21	37.50	0.80	59	1.4	1.12 (3.1%)

10% Yield On GIL Using Covered Calls
Expiration	Strike	Call Bid	Days	Cents/Day	Upside Potential
May 17	37.50	0.60	24	2.5	1.12 (3.1%)
Jun 21	37.50	0.80	59	1.4	1.12 (3.1%)

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Want more examples? GIII Dividend | GILD Dividend