GT Dividend Type Payments
Although GT has no upcoming (meaning, Board-approved and announced) dividends, you can sell covered calls on The Goodyear Tire & Rubber Company 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):
The Goodyear Tire & Rubber Company (GT) | ||||||
---|---|---|---|---|---|---|
Bid | Ask | Last | Change | Volume | P/E | Market Cap |
12.38 | 12.80 | 12.42 | +0.01 | 5.6M | - | 3.5B |
GT Dividend-Like Income Using Covered Calls
With GT at 12.42, 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% | 0.37 | 0.1 |
5% | 0.62 | 0.2 |
10% | 1.24 | 0.3 |
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 GT Using Covered Calls | ||||||
---|---|---|---|---|---|---|
Expiration | Strike | Call Bid | Days | Cents/Day | Upside Potential | |
May 17 | 13.00 | 0.10 | 11 | 0.9 | 0.20 (1.6%) | |
Oct 18 | 13.00 | 1.10 | 165 | 0.7 | 0.20 (1.6%) |
5% Yield On GT Using Covered Calls | ||||||
---|---|---|---|---|---|---|
Expiration | Strike | Call Bid | Days | Cents/Day | Upside Potential | |
May 17 | 13.00 | 0.10 | 11 | 0.9 | 0.20 (1.6%) | |
Oct 18 | 13.00 | 1.10 | 165 | 0.7 | 0.20 (1.6%) |
10% Yield On GT Using Covered Calls | ||||||
---|---|---|---|---|---|---|
Expiration | Strike | Call Bid | Days | Cents/Day | Upside Potential | |
May 17 | 13.00 | 0.10 | 11 | 0.9 | 0.20 (1.6%) | |
Oct 18 | 13.00 | 1.10 | 165 | 0.7 | 0.20 (1.6%) |
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Top 10 Open Interest For May 17 Expiration | Top 5 High Yield | |||||
---|---|---|---|---|---|---|
1. | IWM dividend | 6. | EEM dividend | 1. | RIVN dividend | |
2. | QQQ dividend | 7. | TSLA dividend | 2. | AFRM dividend | |
3. | SPY dividend | 8. | SLV dividend | 3. | UPST dividend | |
4. | HYG dividend | 9. | TLT dividend | 4. | TWLO dividend | |
5. | FXI dividend | 10. | NVDA dividend | 5. | U dividend |
Want more examples? GSY Dividend | GTE Dividend