SGOL Dividend Type Payments

Although SGOL has no upcoming (meaning, Board-approved and announced) dividends, you can sell covered calls on ETFS PHYSICAL SWISS GOLD SHARE 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):

ETFS PHYSICAL SWISS GOLD SHARE (SGOL)
Bid Ask Last Change Volume P/E Market Cap
115.25 115.27 115.28 -1.69 18K - 8.8B

SGOL Dividend-Like Income Using Covered Calls

With SGOL at 115.28, 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% 3.46 0.9
5% 5.76 1.6
10% 11.53 3.2

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 SGOL Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Aug 17 117.00 0.05 5 1.0 1.73 (1.5%)
Sep 21 119.00 0.45 40 1.1 3.73 (3.2%)
5% Yield On SGOL Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Aug 17 116.00 0.25 5 5.0 0.73 (0.6%)
Sep 21 118.00 0.65 40 1.6 2.73 (2.4%)
10% Yield On SGOL Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Aug 17 116.00 0.25 5 5.0 0.73 (0.6%)
Sep 21 115.00 1.75 40 3.7 0.00 (0.0%)

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Want more examples? SGMS Dividend | SGRY Dividend