GLAD Dividend

Gladstone Capital Corporation - Closed End Fund dividend

Although GLAD has a dividend of 0.15 with an ex-dividend date of Oct 24, you can sell covered calls on Gladstone Capital Corporation - Closed End Fund to create 12 extra dividend type payments per year to boost its yield. Let's look at some recent prices (last updated Fri 4:16 PM ET):

Gladstone Capital Corporation - Closed End Fund (GLAD)
Bid Ask Last Change Volume P/E Market Cap
19.08 19.30 19.28 -0.01 512K - 0.4B

GLAD Dividend-Like Income Using Covered Calls

With GLAD at 19.28, 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% 0.58 0.2
5% 0.96 0.3
10% 1.93 0.5

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 GLAD Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Mar 20 20.00 0.65 155 0.4 0.70 (3.6%)
5% Yield On GLAD Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Mar 20 20.00 0.65 155 0.4 0.70 (3.6%)

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