GOEX Dividend Type Payments
Although GOEX has no upcoming (meaning, Board-approved and announced) dividends, you can sell covered calls on Global X Gold Explorers ETF 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):
| Global X Gold Explorers ETF (GOEX) |
|---|
| Bid |
Ask |
Last |
Change |
Volume |
P/E |
Market Cap |
| 72.00 |
79.21 |
75.94 |
-0.05 |
11K |
- |
0.1B |
GOEX Dividend-Like Income Using Covered Calls
With GOEX at 75.94, 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% |
2.28 |
0.6 |
| 5% |
3.80 |
1.0 |
| 10% |
7.59 |
2.1 |
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 GOEX Using Covered Calls |
|---|
| Expiration |
Strike |
Call Bid |
Days |
Cents/Day |
Upside Potential |
| Dec 19 |
79.00 |
0.55 |
17 |
2.0 |
0.00 (0.0%) |
| Jan 16 |
80.00 |
0.60 |
45 |
1.3 |
0.79 (1.0%) |
| 5% Yield On GOEX Using Covered Calls |
|---|
| Expiration |
Strike |
Call Bid |
Days |
Cents/Day |
Upside Potential |
| Dec 19 |
79.00 |
0.55 |
17 |
2.0 |
0.00 (0.0%) |
| Jan 16 |
80.00 |
0.60 |
45 |
1.3 |
0.79 (1.0%) |
| 10% Yield On GOEX Using Covered Calls |
|---|
| Expiration |
Strike |
Call Bid |
Days |
Cents/Day |
Upside Potential |
| Apr 17 |
80.00 |
4.40 |
136 |
3.2 |
0.79 (1.0%) |
| Jul 17 |
79.00 |
7.30 |
227 |
3.1 |
0.00 (0.0%) |
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