GIII Dividend Type Payments
Although GIII has no upcoming (meaning, Board-approved and announced) dividends, you can sell covered calls on G-III Apparel Group, LTD. to create 12 extra dividend type payments per year to boost its yield. Let's look at some recent prices (last updated Wed 11:20 AM ET):
| G-III Apparel Group, LTD. (GIII) |
|---|
| Bid |
Ask |
Last |
Change |
Volume |
P/E |
Market Cap |
| 27.15 |
27.28 |
27.27 |
+0.35 |
33K |
6.7 |
1.1B |
GIII Dividend-Like Income Using Covered Calls
With GIII at 27.27, 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% |
0.82 |
0.2 |
| 5% |
1.36 |
0.4 |
| 10% |
2.73 |
0.7 |
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 GIII Using Covered Calls |
|---|
| Expiration |
Strike |
Call Bid |
Days |
Cents/Day |
Upside Potential |
| Dec 19 |
30.00 |
0.75 |
45 |
1.7 |
2.72 (10.0%) |
| Nov 21 |
30.00 |
0.05 |
17 |
0.3 |
2.72 (10.0%) |
| 5% Yield On GIII Using Covered Calls |
|---|
| Expiration |
Strike |
Call Bid |
Days |
Cents/Day |
Upside Potential |
| Dec 19 |
30.00 |
0.75 |
45 |
1.7 |
2.72 (10.0%) |
| Mar 20 |
30.00 |
1.25 |
136 |
0.9 |
2.72 (10.0%) |
| 10% Yield On GIII Using Covered Calls |
|---|
| Expiration |
Strike |
Call Bid |
Days |
Cents/Day |
Upside Potential |
| Dec 19 |
30.00 |
0.75 |
45 |
1.7 |
2.72 (10.0%) |
| Mar 20 |
30.00 |
1.25 |
136 |
0.9 |
2.72 (10.0%) |
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