GNOM Dividend Type Payments

Global X Genomics & Biotechnology ETF dividend

Although GNOM has no upcoming (meaning, Board-approved and announced) dividends, you can sell covered calls on Global X Genomics & Biotechnology ETF to create 12 extra dividend type payments per year to boost its yield. Let's look at some recent prices (last updated Fri 2:55 PM ET):

Global X Genomics & Biotechnology ETF (GNOM)
Bid Ask Last Change Volume P/E Market Cap
9.30 9.32 9.31 +0.13 23K - 0.1B

GNOM Dividend-Like Income Using Covered Calls

With GNOM at 9.31, 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% 0.28 0.1
5% 0.47 0.1
10% 0.93 0.3

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 GNOM Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Nov 21 10.00 0.15 99 0.2 0.68 (7.3%)
5% Yield On GNOM Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Nov 21 10.00 0.15 99 0.2 0.68 (7.3%)

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