GSK Dividend Type Payments

GLAXOSMITHKLINE dividend

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

GLAXOSMITHKLINE (GSK)
Bid Ask Last Change Volume P/E Market Cap
39.28 39.85 39.55 -0.08 2.6M 45 97B

GSK Dividend-Like Income Using Covered Calls

With GSK at 39.55, 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% 1.19 0.3
5% 1.98 0.5
10% 3.96 1.1

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 GSK Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Sep 21 40.00 0.05 3 1.7 0.15 (0.4%)
Sep 28 40.50 0.05 10 0.5 0.65 (1.6%)
5% Yield On GSK Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Sep 21 40.00 0.05 3 1.7 0.15 (0.4%)
Sep 28 40.00 0.20 10 2.0 0.15 (0.4%)
10% Yield On GSK Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Sep 21 40.00 0.05 3 1.7 0.15 (0.4%)
Sep 28 40.00 0.20 10 2.0 0.15 (0.4%)

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Top 10 Open Interest For Sep 21 Expiration     Top 5 High Yield
1.EEM dividend 6.GE dividend   1.CRON dividend
2.SPY dividend 7.EWZ dividend   2.TGTX dividend
3.SPX dividend 8.VXX dividend   3.GERN dividend
4.QQQ dividend 9.FXI dividend   4.CGC dividend
5.XLF dividend 10.FB dividend   5.RHT dividend

Want more examples? GSJY Dividend | GSKY Dividend