GLNG Dividend

Golar LNG Limited - Common Shares dividend

Although GLNG has a dividend of 0.25 with an ex-dividend date of Nov 25, you can sell covered calls on Golar LNG Limited - Common Shares to create 12 extra dividend type payments per year to boost its yield. Let's look at some recent prices (last updated Tue 4:16 PM ET):

Golar LNG Limited - Common Shares (GLNG)
Bid Ask Last Change Volume P/E Market Cap
35.50 37.85 36.45 -1.65 1.4M - 4.2B

GLNG Dividend-Like Income Using Covered Calls

With GLNG at 36.45, 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% 1.09 0.3
5% 1.82 0.5
10% 3.65 1.0

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 GLNG Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Nov 15 38.00 0.10 4 2.5 0.15 (0.4%)
Dec 20 38.00 1.25 39 3.2 0.15 (0.4%)
5% Yield On GLNG Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Nov 15 38.00 0.10 4 2.5 0.15 (0.4%)
Dec 20 38.00 1.25 39 3.2 0.15 (0.4%)
10% Yield On GLNG Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Nov 15 38.00 0.10 4 2.5 0.15 (0.4%)
Dec 20 38.00 1.25 39 3.2 0.15 (0.4%)

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