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 Fri 10:50 AM ET):

GORMAN-RUPP CO (GRC)
Bid Ask Last Change Volume P/E Market Cap
32.33 32.67 32.54 +0.17 10K 25 0.8B

GRC Dividend-Like Income Using Covered Calls

With GRC at 32.54, 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% 0.98 0.3
5% 1.63 0.4
10% 3.25 0.9

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
Nov 16 35.00 0.10 29 0.3 2.33 (7.2%)
Dec 21 35.00 0.40 64 0.6 2.33 (7.2%)
5% Yield On GRC Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Dec 21 35.00 0.40 64 0.6 2.33 (7.2%)
Mar 15 35.00 0.95 148 0.6 2.33 (7.2%)

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Top 10 Open Interest For Nov 16 Expiration     Top 5 High Yield
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3.EEM dividend 8.VXX dividend   3.CGC dividend
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5.QQQ dividend 10.BAC dividend   5.SNAP dividend

Want more examples? GRBK Dividend | GREK Dividend