GILD Dividend

GILEAD SCIENCES dividend

Although GILD has a dividend of 0.57 with an ex-dividend date of Sep 13, you can sell covered calls on GILEAD SCIENCES to create 12 extra dividend type payments per year to boost its yield. Let's look at some recent prices (last updated Mon 4:16 PM ET):

GILEAD SCIENCES (GILD)
Bid Ask Last Change Volume P/E Market Cap
77.00 78.00 77.17 +0.44 4.4M 45 100B

GILD Dividend-Like Income Using Covered Calls

With GILD at 77.17, 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% 2.32 0.6
5% 3.86 1.1
10% 7.72 2.1

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 GILD Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Aug 17 80.00 0.05 5 1.0 2.00 (2.6%)
Aug 24 81.50 0.08 12 0.7 3.50 (4.5%)
5% Yield On GILD Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Aug 17 79.50 0.07 5 1.4 1.50 (1.9%)
Aug 24 80.00 0.22 12 1.8 2.00 (2.6%)
10% Yield On GILD Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Aug 17 79.00 0.12 5 2.4 1.00 (1.3%)
Aug 24 79.00 0.42 12 3.5 1.00 (1.3%)

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Want more examples? GIL Dividend | GILT Dividend