GLD Dividend Type Payments

SPDR GOLD SHARES dividend

Although GLD has no upcoming (meaning, Board-approved and announced) dividends, you can sell covered calls on SPDR GOLD SHARES 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):

SPDR GOLD SHARES (GLD)
Bid Ask Last Change Volume P/E Market Cap
120.80 120.82 120.80 -0.31 4.7M - 356B

GLD Dividend-Like Income Using Covered Calls

With GLD at 120.80, 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% 3.62 1.0
5% 6.04 1.7
10% 12.08 3.3

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 GLD Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Jun 22 123.00 0.04 4 1.0 2.18 (1.8%)
Jun 29 123.00 0.19 11 1.7 2.18 (1.8%)
5% Yield On GLD Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Jun 22 122.50 0.07 4 1.8 1.68 (1.4%)
Jun 29 123.00 0.19 11 1.7 2.18 (1.8%)
10% Yield On GLD Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Jun 22 121.50 0.22 4 5.5 0.68 (0.6%)
Jun 29 122.00 0.38 11 3.5 1.18 (1.0%)

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Top 10 Open Interest For Jul 20 Expiration     Top 5 High Yield
1.SPY dividend 6.MU dividend   1.RENN dividend
2.EEM dividend 7.SPX dividend   2.AQXP dividend
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5.EWZ dividend 10.QQQ dividend   5.UVXY dividend

Want more examples? GLAD Dividend | GLDD Dividend