GSK Dividend Type Payments
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 Fri 4:16 PM ET):
| GSK plc American Depositary Shares (Each representing two Ordinary Share (GSK) | ||||||
|---|---|---|---|---|---|---|
| Bid | Ask | Last | Change | Volume | P/E | Market Cap |
| 40.62 | 40.95 | 40.86 | -1.63 | 7.6M | - | 129B |
GSK Dividend-Like Income Using Covered Calls
With GSK at 40.86, 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% | 1.23 | 0.3 |
| 5% | 2.04 | 0.6 |
| 10% | 4.09 | 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 | |
| Jul 11 | 43.00 | 0.25 | 29 | 0.9 | 2.05 (5.0%) | |
| Aug 15 | 41.00 | 1.60 | 64 | 2.5 | 0.05 (0.1%) | |
| 5% Yield On GSK Using Covered Calls | ||||||
|---|---|---|---|---|---|---|
| Expiration | Strike | Call Bid | Days | Cents/Day | Upside Potential | |
| Jul 11 | 43.00 | 0.25 | 29 | 0.9 | 2.05 (5.0%) | |
| Aug 15 | 41.00 | 1.60 | 64 | 2.5 | 0.05 (0.1%) | |
| 10% Yield On GSK Using Covered Calls | ||||||
|---|---|---|---|---|---|---|
| Expiration | Strike | Call Bid | Days | Cents/Day | Upside Potential | |
| Aug 15 | 41.00 | 1.60 | 64 | 2.5 | 0.05 (0.1%) | |
| Jul 18 | 41.00 | 0.45 | 36 | 1.3 | 0.05 (0.1%) | |
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| Top 10 Open Interest For Jun 20 Expiration | Top 5 High Yield | |||||
|---|---|---|---|---|---|---|
| 1. | NVDA dividend | 6. | TSLA dividend | 1. | AES dividend | |
| 2. | SPY dividend | 7. | GLD dividend | 2. | DYN dividend | |
| 3. | QQQ dividend | 8. | EEM dividend | 3. | RUN dividend | |
| 4. | SLV dividend | 9. | FXI dividend | 4. | ALT dividend | |
| 5. | IWM dividend | 10. | TLT dividend | 5. | CAPR dividend | |
Want more examples? GSJY Dividend | GSL Dividend
