GROW Dividend
Although GROW has a dividend of 0.01 with an ex-dividend date of Sep 15, you can sell covered calls on U.S. Global Investors, Inc. - Class A 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):
| U.S. Global Investors, Inc. - Class A (GROW) |
|---|
| Bid |
Ask |
Last |
Change |
Volume |
P/E |
Market Cap |
| 2.38 |
2.50 |
2.46 |
+0.03 |
11K |
- |
0.1B |
GROW Dividend-Like Income Using Covered Calls
With GROW at 2.46, 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% |
0.07 |
0.0 |
| 5% |
0.12 |
0.0 |
| 10% |
0.25 |
0.1 |
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 GROW Using Covered Calls |
|---|
| Expiration |
Strike |
Call Bid |
Days |
Cents/Day |
Upside Potential |
| Oct 17 |
2.50 |
0.05 |
36 |
0.1 |
0.00 (0.0%) |
| Dec 19 |
2.50 |
0.10 |
99 |
0.1 |
0.00 (0.0%) |
| 5% Yield On GROW Using Covered Calls |
|---|
| Expiration |
Strike |
Call Bid |
Days |
Cents/Day |
Upside Potential |
| Oct 17 |
2.50 |
0.05 |
36 |
0.1 |
0.00 (0.0%) |
| Dec 19 |
2.50 |
0.10 |
99 |
0.1 |
0.00 (0.0%) |
| 10% Yield On GROW Using Covered Calls |
|---|
| Expiration |
Strike |
Call Bid |
Days |
Cents/Day |
Upside Potential |
| Oct 17 |
2.50 |
0.05 |
36 |
0.1 |
0.00 (0.0%) |
| Dec 19 |
2.50 |
0.10 |
99 |
0.1 |
0.00 (0.0%) |
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