GMED Dividend Type Payments
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 Wed 4:16 PM ET):
Globus Medical, Inc. Class A (GMED) | ||||||
---|---|---|---|---|---|---|
Bid | Ask | Last | Change | Volume | P/E | Market Cap |
49.83 | 52.79 | 51.44 | +0.17 | 804K | 48 | 6.9B |
GMED Dividend-Like Income Using Covered Calls
With GMED at 51.44, 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% | 1.54 | 0.4 |
5% | 2.57 | 0.7 |
10% | 5.14 | 1.4 |
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 | |
May 17 | 55.00 | 0.50 | 24 | 2.1 | 2.21 (4.3%) | |
Jun 21 | 55.00 | 0.30 | 59 | 0.5 | 2.21 (4.3%) |
5% Yield On GMED Using Covered Calls | ||||||
---|---|---|---|---|---|---|
Expiration | Strike | Call Bid | Days | Cents/Day | Upside Potential | |
May 17 | 55.00 | 0.50 | 24 | 2.1 | 2.21 (4.3%) | |
Jun 21 | 57.50 | 0.45 | 59 | 0.8 | 4.71 (9.2%) |
10% Yield On GMED Using Covered Calls | ||||||
---|---|---|---|---|---|---|
Expiration | Strike | Call Bid | Days | Cents/Day | Upside Potential | |
May 17 | 55.00 | 0.50 | 24 | 2.1 | 2.21 (4.3%) | |
Sep 20 | 55.00 | 2.70 | 150 | 1.8 | 2.21 (4.3%) |
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Top 10 Open Interest For May 17 Expiration | Top 5 High Yield | |||||
---|---|---|---|---|---|---|
1. | IWM dividend | 6. | EEM dividend | 1. | SNAP dividend | |
2. | HYG dividend | 7. | KWEB dividend | 2. | META dividend | |
3. | QQQ dividend | 8. | TSLA dividend | 3. | FSLY dividend | |
4. | SPY dividend | 9. | SLV dividend | 4. | CVNA dividend | |
5. | FXI dividend | 10. | EWZ dividend | 5. | PINS dividend |
Want more examples? GME Dividend | GMF Dividend