GLAD Dividend

Gladstone Capital Corporation - Closed End Fund dividend

Although GLAD has a dividend of 0.17 with an ex-dividend date of Sep 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
23.30 23.57 23.57 +0.27 140K - 0.5B

GLAD Dividend-Like Income Using Covered Calls

With GLAD at 23.57, 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% 0.71 0.2
5% 1.18 0.3
10% 2.36 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:

3% Yield On GLAD Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Dec 19 25.00 0.30 93 0.3 1.43 (6.1%)
Mar 20 25.00 0.85 184 0.5 1.43 (6.1%)
5% Yield On GLAD Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Mar 20 25.00 0.85 184 0.5 1.43 (6.1%)

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