GLAD Dividend
Although GLAD has a dividend of 0.17 with an ex-dividend date of May 16, 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 Thu 10:35 AM ET):
| Gladstone Capital Corporation - Closed End Fund (GLAD) | ||||||
|---|---|---|---|---|---|---|
| Bid | Ask | Last | Change | Volume | P/E | Market Cap |
| 21.19 | 21.22 | 21.20 | -0.04 | 14K | 10 | 0.5B |
GLAD Dividend-Like Income Using Covered Calls
With GLAD at 21.20, 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% | 0.64 | 0.2 |
| 5% | 1.06 | 0.3 |
| 10% | 2.12 | 0.6 |
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:
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| Top 10 Open Interest For May 17 Expiration | Top 5 High Yield | |||||
|---|---|---|---|---|---|---|
| 1. | QQQ dividend | 6. | EEM dividend | 1. | FSLY dividend | |
| 2. | HYG dividend | 7. | KWEB dividend | 2. | SNAP dividend | |
| 3. | IWM dividend | 8. | SLV dividend | 3. | WOLF dividend | |
| 4. | SPY dividend | 9. | TSLA dividend | 4. | CLSK dividend | |
| 5. | FXI dividend | 10. | NVDA dividend | 5. | UPST dividend | |
Want more examples? GL Dividend | GLD Dividend
