GAIN Dividend
Although GAIN has a dividend of 0.08 with an ex-dividend date of Mar 19, 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 Mon 4:16 PM ET):
| Gladstone Investment Corporation - Business Development Company (GAIN) | ||||||
|---|---|---|---|---|---|---|
| Bid | Ask | Last | Change | Volume | P/E | Market Cap |
| 13.54 | 13.63 | 13.58 | -0.05 | 126K | 7.1 | 0.5B |
GAIN Dividend-Like Income Using Covered Calls
With GAIN at 13.58, 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% | 0.41 | 0.1 |
| 5% | 0.68 | 0.2 |
| 10% | 1.36 | 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 Mar 21 Expiration | Top 5 High Yield | |||||
|---|---|---|---|---|---|---|
| 1. | NVDA dividend | 6. | IWM dividend | 1. | LUNR dividend | |
| 2. | SPY dividend | 7. | INTC dividend | 2. | HIMS dividend | |
| 3. | FXI dividend | 8. | QQQ dividend | 3. | ZETA dividend | |
| 4. | EEM dividend | 9. | SLV dividend | 4. | WOLF dividend | |
| 5. | KWEB dividend | 10. | TLT dividend | 5. | DNA dividend | |
Want more examples? GAIA Dividend | GAL Dividend
