GAIN Dividend
Although GAIN has a dividend of 0.08 with an ex-dividend date of Jan 24, you can sell covered calls on Gladstone Investment Corporation - Business Development 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):
| Gladstone Investment Corporation - Business Development Company (GAIN) | ||||||
|---|---|---|---|---|---|---|
| Bid | Ask | Last | Change | Volume | P/E | Market Cap |
| 13.33 | 13.46 | 13.37 | +0.12 | 104K | 6.5 | 0.5B |
GAIN Dividend-Like Income Using Covered Calls
With GAIN at 13.37, 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% | 1.34 | 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:
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| Top 10 Open Interest For Feb 21 Expiration | Top 5 High Yield | |||||
|---|---|---|---|---|---|---|
| 1. | NVDA dividend | 6. | SLV dividend | 1. | QUBT dividend | |
| 2. | TLT dividend | 7. | TSLA dividend | 2. | RGTI dividend | |
| 3. | SPY dividend | 8. | AMZN dividend | 3. | MSTR dividend | |
| 4. | IWM dividend | 9. | ASHR dividend | 4. | QBTS dividend | |
| 5. | FXI dividend | 10. | AAPL dividend | 5. | MBLY dividend | |
Want more examples? GAIA Dividend | GAL Dividend
