GIB Dividend Type Payments
Although GIB has no upcoming (meaning, Board-approved and announced) dividends, you can sell covered calls on CGI Inc. to create 12 extra dividend type payments per year to boost its yield. Let's look at some recent prices (last updated Tue 2:35 PM ET):
| CGI Inc. (GIB) | ||||||
|---|---|---|---|---|---|---|
| Bid | Ask | Last | Change | Volume | P/E | Market Cap |
| 106.39 | 106.61 | 106.50 | +1.67 | 81K | 20 | 29B |
GIB Dividend-Like Income Using Covered Calls
With GIB at 106.50, 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% | 3.20 | 0.9 |
| 5% | 5.33 | 1.5 |
| 10% | 10.65 | 2.9 |
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 GIB Using Covered Calls | ||||||
|---|---|---|---|---|---|---|
| Expiration | Strike | Call Bid | Days | Cents/Day | Upside Potential | |
| Nov 21 | 110.00 | 2.05 | 144 | 1.4 | 3.39 (3.2%) | |
| Feb 20 | 110.00 | 4.00 | 235 | 1.7 | 3.39 (3.2%) | |
| 5% Yield On GIB Using Covered Calls | ||||||
|---|---|---|---|---|---|---|
| Expiration | Strike | Call Bid | Days | Cents/Day | Upside Potential | |
| Feb 20 | 110.00 | 4.00 | 235 | 1.7 | 3.39 (3.2%) | |
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| Top 10 Open Interest For Jul 18 Expiration | Top 5 High Yield | |||||
|---|---|---|---|---|---|---|
| 1. | NVDA dividend | 6. | GLD dividend | 1. | CIFR dividend | |
| 2. | SLV dividend | 7. | AAPL dividend | 2. | COGT dividend | |
| 3. | SPY dividend | 8. | TLT dividend | 3. | EOSE dividend | |
| 4. | IWM dividend | 9. | FXI dividend | 4. | STZ dividend | |
| 5. | TSLA dividend | 10. | QQQ dividend | 5. | FULC dividend | |
Want more examples? GHYB Dividend | GIC Dividend
