GPN Dividend Type Payments

GLOBAL PAYMENTS dividend

Although GPN has no upcoming (meaning, Board-approved and announced) dividends, you can sell covered calls on GLOBAL PAYMENTS to create 12 extra dividend type payments per year to boost its yield. Let's look at some recent prices (last updated Tue 3:00 PM ET):

GLOBAL PAYMENTS (GPN)
Bid Ask Last Change Volume P/E Market Cap
114.94 114.99 114.97 -1.86 750K 33 19B

GPN Dividend-Like Income Using Covered Calls

With GPN at 114.97, 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% 3.45 0.9
5% 5.75 1.6
10% 11.50 3.1

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 GPN Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Nov 16 125.00 0.65 25 2.6 10.01 (8.7%)
Dec 21 130.00 0.80 60 1.3 15.01 (13.1%)
5% Yield On GPN Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Nov 16 125.00 0.65 25 2.6 10.01 (8.7%)
Dec 21 125.00 1.60 60 2.7 10.01 (8.7%)
10% Yield On GPN Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Nov 16 120.00 1.70 25 6.8 5.01 (4.4%)
Dec 21 120.00 2.95 60 4.9 5.01 (4.4%)

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Want more examples? GPMT Dividend | GPOR Dividend