GOLD Dividend Type Payments

Randgold Resources Ltd ADS dividend

Although GOLD has no upcoming (meaning, Board-approved and announced) dividends, you can sell covered calls on Randgold Resources Ltd ADS to create 12 extra dividend type payments per year to boost its yield. Let's look at some recent prices (last updated Fri 4:16 PM ET):

Randgold Resources Ltd ADS (GOLD)
Bid Ask Last Change Volume P/E Market Cap
85.50 86.75 85.72 -2.80 774K - 0.0B

GOLD Dividend-Like Income Using Covered Calls

With GOLD at 85.72, 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% 2.57 0.7
5% 4.29 1.2
10% 8.57 2.3

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 GOLD Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Dec 21 90.00 0.30 8 3.8 3.25 (3.8%)
Jan 18 92.50 0.65 36 1.8 5.75 (6.7%)
5% Yield On GOLD Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Dec 21 90.00 0.30 8 3.8 3.25 (3.8%)
Jan 18 92.50 0.65 36 1.8 5.75 (6.7%)
10% Yield On GOLD Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Dec 21 90.00 0.30 8 3.8 3.25 (3.8%)
Jan 18 90.00 1.00 36 2.8 3.25 (3.8%)

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Top 10 Open Interest For Dec 21 Expiration     Top 5 High Yield
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