OCSL Dividend
Although OCSL has a dividend of 0.40 with an ex-dividend date of Dec 15, 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 Wed 4:16 PM ET):
| Oaktree Specialty Lending Corporation - Closed End Fund (OCSL) | ||||||
|---|---|---|---|---|---|---|
| Bid | Ask | Last | Change | Volume | P/E | Market Cap |
| 13.13 | 13.82 | 13.32 | -0.01 | 807K | 23 | 1.2B |
OCSL Dividend-Like Income Using Covered Calls
With OCSL at 13.32, 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% | 0.40 | 0.1 |
| 5% | 0.67 | 0.2 |
| 10% | 1.33 | 0.4 |
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 | |
| May 15 | 15.00 | 0.20 | 178 | 0.1 | 1.18 (8.9%) | |
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|---|---|---|---|---|---|---|
| 1. | NVDA dividend | 6. | SPY dividend | 1. | ESTC dividend | |
| 2. | IBIT dividend | 7. | QQQ dividend | 2. | SGML dividend | |
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| 5. | NFLX dividend | 10. | INTC dividend | 5. | OLMA dividend | |
Want more examples? OCIO Dividend | OCUL Dividend
