LAND Dividend Type Payments

Although LAND has no upcoming (meaning, Board-approved and announced) dividends, you can sell covered calls on Gladstone Land Corp to create 12 extra dividend type payments per year to boost its yield. Let's look at some recent prices (last updated Tue 11:15 AM ET):

Gladstone Land Corp (LAND)
Bid Ask Last Change Volume P/E Market Cap
12.34 12.36 12.36 +0.01 15K 82 0.2B

LAND Dividend-Like Income Using Covered Calls

With LAND at 12.36, 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% 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 LAND Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Apr 18 12.50 0.10 31 0.3 0.14 (1.1%)
May 17 12.50 0.25 60 0.4 0.14 (1.1%)
5% Yield On LAND Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Apr 18 12.50 0.10 31 0.3 0.14 (1.1%)
May 17 12.50 0.25 60 0.4 0.14 (1.1%)
10% Yield On LAND Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
May 17 12.50 0.25 60 0.4 0.14 (1.1%)

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