OCSL Dividend Type Payments
Although OCSL has no upcoming (meaning, Board-approved and announced) dividends, you can sell covered calls on Oaktree Specialty Lending Corporation - Closed End Fund 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):
| Oaktree Specialty Lending Corporation - Closed End Fund (OCSL) |
|---|
| Bid |
Ask |
Last |
Change |
Volume |
P/E |
Market Cap |
| 19.55 |
19.90 |
19.83 |
+0.16 |
399K |
8.0 |
1.6B |
OCSL Dividend-Like Income Using Covered Calls
With OCSL at 19.83, 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% |
0.59 |
0.2 |
| 5% |
0.99 |
0.3 |
| 10% |
1.98 |
0.5 |
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 OCSL Using Covered Calls |
|---|
| Expiration |
Strike |
Call Bid |
Days |
Cents/Day |
Upside Potential |
| Nov 15 |
20.00 |
0.65 |
204 |
0.3 |
0.10 (0.5%) |
| Aug 16 |
20.00 |
0.20 |
113 |
0.2 |
0.10 (0.5%) |
| 5% Yield On OCSL Using Covered Calls |
|---|
| Expiration |
Strike |
Call Bid |
Days |
Cents/Day |
Upside Potential |
| Nov 15 |
20.00 |
0.65 |
204 |
0.3 |
0.10 (0.5%) |
| May 17 |
20.00 |
0.20 |
22 |
0.9 |
0.10 (0.5%) |
| 10% Yield On OCSL Using Covered Calls |
|---|
| Expiration |
Strike |
Call Bid |
Days |
Cents/Day |
Upside Potential |
| May 17 |
20.00 |
0.20 |
22 |
0.9 |
0.10 (0.5%) |
| Jun 21 |
20.00 |
0.35 |
57 |
0.6 |
0.10 (0.5%) |
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