GMED Dividend Type Payments

Globus Medical, Inc. Class A dividend

Although GMED has no upcoming (meaning, Board-approved and announced) dividends, you can sell covered calls on Globus Medical, Inc. Class A to create 12 extra dividend type payments per year to boost its yield. Let's look at some recent prices (last updated Thu 4:16 PM ET):

Globus Medical, Inc. Class A (GMED)
Bid Ask Last Change Volume P/E Market Cap
87.10 89.50 88.74 +0.99 1.3M 28 12B

GMED Dividend-Like Income Using Covered Calls

With GMED at 88.74, 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% 2.66 0.7
5% 4.44 1.2
10% 8.87 2.4

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 GMED Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Dec 19 90.00 1.30 16 8.1 0.50 (0.6%)
Jan 16 90.00 2.50 44 5.7 0.50 (0.6%)
5% Yield On GMED Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Dec 19 90.00 1.30 16 8.1 0.50 (0.6%)
Jan 16 90.00 2.50 44 5.7 0.50 (0.6%)
10% Yield On GMED Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Dec 19 90.00 1.30 16 8.1 0.50 (0.6%)
Jan 16 90.00 2.50 44 5.7 0.50 (0.6%)

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