GSM Dividend Type Payments
Although GSM has no upcoming (meaning, Board-approved and announced) dividends, you can sell covered calls on Ferroglobe PLC - Ordinary Shares to create 12 extra dividend type payments per year to boost its yield. Let's look at some recent prices (last updated Mon 4:16 PM ET):
| Ferroglobe PLC - Ordinary Shares (GSM) | ||||||
|---|---|---|---|---|---|---|
| Bid | Ask | Last | Change | Volume | P/E | Market Cap |
| 5.34 | 5.35 | 5.28 | +0.32 | 1.6M | - | 0.8B |
GSM Dividend-Like Income Using Covered Calls
With GSM at 5.28, 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% | 0.16 | 0.0 |
| 5% | 0.26 | 0.1 |
| 10% | 0.53 | 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 GSM Using Covered Calls | ||||||
|---|---|---|---|---|---|---|
| Expiration | Strike | Call Bid | Days | Cents/Day | Upside Potential | |
| Dec 19 | 6.00 | 0.25 | 68 | 0.4 | 0.65 (12.3%) | |
| Nov 21 | 6.00 | 0.25 | 40 | 0.6 | 0.65 (12.3%) | |
| 5% Yield On GSM Using Covered Calls | ||||||
|---|---|---|---|---|---|---|
| Expiration | Strike | Call Bid | Days | Cents/Day | Upside Potential | |
| Dec 19 | 6.00 | 0.25 | 68 | 0.4 | 0.65 (12.3%) | |
| Nov 21 | 6.00 | 0.25 | 40 | 0.6 | 0.65 (12.3%) | |
| 10% Yield On GSM Using Covered Calls | ||||||
|---|---|---|---|---|---|---|
| Expiration | Strike | Call Bid | Days | Cents/Day | Upside Potential | |
| Dec 19 | 6.00 | 0.25 | 68 | 0.4 | 0.65 (12.3%) | |
| Nov 21 | 6.00 | 0.25 | 40 | 0.6 | 0.65 (12.3%) | |
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| Top 10 Open Interest For Oct 17 Expiration | Top 5 High Yield | |||||
|---|---|---|---|---|---|---|
| 1. | NVDA dividend | 6. | TSLA dividend | 1. | ARCT dividend | |
| 2. | IBIT dividend | 7. | INTC dividend | 2. | NVTS dividend | |
| 3. | GLD dividend | 8. | QQQ dividend | 3. | HIVE dividend | |
| 4. | SPY dividend | 9. | IWM dividend | 4. | AAOI dividend | |
| 5. | SLV dividend | 10. | AMZN dividend | 5. | BTBT dividend | |
Want more examples? GSLC Dividend | GSPY Dividend
