GSK Dividend Type Payments

GSK plc American Depositary Shares (Each representing two Ordinary Share dividend

Although GSK has no upcoming (meaning, Board-approved and announced) dividends, you can sell covered calls on GSK plc American Depositary Shares (Each representing two Ordinary Share to create 12 extra dividend type payments per year to boost its yield. Let's look at some recent prices (last updated Tue 4:16 PM ET):

GSK plc American Depositary Shares (Each representing two Ordinary Share (GSK)
Bid Ask Last Change Volume P/E Market Cap
47.22 48.49 48.27 +1.08 4.8M - 143B

GSK Dividend-Like Income Using Covered Calls

With GSK at 48.27, 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% 1.45 0.4
5% 2.41 0.7
10% 4.83 1.3

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 GSK Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Dec 5 48.50 0.30 4 7.5 0.01 (0.0%)
Dec 12 48.50 0.60 11 5.5 0.01 (0.0%)
5% Yield On GSK Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Dec 5 48.50 0.30 4 7.5 0.01 (0.0%)
Dec 12 48.50 0.60 11 5.5 0.01 (0.0%)
10% Yield On GSK Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Dec 5 48.50 0.30 4 7.5 0.01 (0.0%)
Dec 12 48.50 0.60 11 5.5 0.01 (0.0%)

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