GLAD Dividend
Although GLAD has a dividend of 0.15 with an ex-dividend date of Dec 22, you can sell covered calls on Gladstone Capital Corporation - Closed End Fund to create 12 extra dividend type payments per year to boost its yield. Let's look at some recent prices (last updated Thu 4:16 PM ET):
| Gladstone Capital Corporation - Closed End Fund (GLAD) | ||||||
|---|---|---|---|---|---|---|
| Bid | Ask | Last | Change | Volume | P/E | Market Cap |
| 20.75 | 21.24 | 20.83 | -0.25 | 186K | - | 0.5B |
GLAD Dividend-Like Income Using Covered Calls
With GLAD at 20.83, 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% | 0.62 | 0.2 |
| 5% | 1.04 | 0.3 |
| 10% | 2.08 | 0.6 |
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:
Want to increase dividends with covered calls? Sign Up For A Free Trial
| Top 10 Open Interest For Dec 19 Expiration | Top 5 High Yield | |||||
|---|---|---|---|---|---|---|
| 1. | NVDA dividend | 6. | TSLA dividend | 1. | KBH dividend | |
| 2. | SPY dividend | 7. | SLV dividend | 2. | OMER dividend | |
| 3. | QQQ dividend | 8. | NFLX dividend | 3. | BB dividend | |
| 4. | IBIT dividend | 9. | AMZN dividend | 4. | TLRY dividend | |
| 5. | TLT dividend | 10. | GLD dividend | 5. | TE dividend | |
Want more examples? GL Dividend | GLD Dividend
