GRC Dividend Type Payments

GORMAN-RUPP CO dividend

Although GRC has no upcoming (meaning, Board-approved and announced) dividends, you can sell covered calls on GORMAN-RUPP CO to create 12 extra dividend type payments per year to boost its yield. Let's look at some recent prices (last updated Tue 11:30 AM ET):

GORMAN-RUPP CO (GRC)
Bid Ask Last Change Volume P/E Market Cap
36.83 37.00 37.01 +0.72 7K 28 1.0B

GRC Dividend-Like Income Using Covered Calls

With GRC at 37.01, 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% 1.11 0.3
5% 1.85 0.5
10% 3.70 1.0

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 GRC Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Dec 21 40.00 0.45 130 0.3 3.00 (8.1%)
Mar 15 40.00 1.50 214 0.7 3.00 (8.1%)
5% Yield On GRC Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Mar 15 40.00 1.50 214 0.7 3.00 (8.1%)

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