GNK Dividend
Although GNK has a dividend of 0.15 with an ex-dividend date of May 22, you can sell covered calls on Genco Shipping & Trading Limited Ordinary Shares New (Marshall Islands) 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):
| Genco Shipping & Trading Limited Ordinary Shares New (Marshall Islands) (GNK) | ||||||
|---|---|---|---|---|---|---|
| Bid | Ask | Last | Change | Volume | P/E | Market Cap |
| 14.15 | 14.54 | 14.56 | +0.37 | 657K | 8.1 | 0.6B |
GNK Dividend-Like Income Using Covered Calls
With GNK at 14.56, 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% | 0.44 | 0.1 |
| 5% | 0.73 | 0.2 |
| 10% | 1.46 | 0.4 |
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 GNK Using Covered Calls | ||||||
|---|---|---|---|---|---|---|
| Expiration | Strike | Call Bid | Days | Cents/Day | Upside Potential | |
| Aug 15 | 15.00 | 0.45 | 95 | 0.5 | 0.46 (3.2%) | |
| Jun 20 | 15.00 | 0.25 | 39 | 0.6 | 0.46 (3.2%) | |
| 5% Yield On GNK Using Covered Calls | ||||||
|---|---|---|---|---|---|---|
| Expiration | Strike | Call Bid | Days | Cents/Day | Upside Potential | |
| Aug 15 | 15.00 | 0.45 | 95 | 0.5 | 0.46 (3.2%) | |
| Jun 20 | 15.00 | 0.25 | 39 | 0.6 | 0.46 (3.2%) | |
| 10% Yield On GNK Using Covered Calls | ||||||
|---|---|---|---|---|---|---|
| Expiration | Strike | Call Bid | Days | Cents/Day | Upside Potential | |
| Aug 15 | 15.00 | 0.45 | 95 | 0.5 | 0.46 (3.2%) | |
| Jun 20 | 15.00 | 0.25 | 39 | 0.6 | 0.46 (3.2%) | |
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| Top 10 Open Interest For May 16 Expiration | Top 5 High Yield | |||||
|---|---|---|---|---|---|---|
| 1. | NVDA dividend | 6. | IWM dividend | 1. | GRAL dividend | |
| 2. | SPY dividend | 7. | SLV dividend | 2. | DOCS dividend | |
| 3. | TLT dividend | 8. | FXI dividend | 3. | CAVA dividend | |
| 4. | TSLA dividend | 9. | GLD dividend | 4. | RCAT dividend | |
| 5. | QQQ dividend | 10. | INTC dividend | 5. | ASPI dividend | |
Want more examples? GNE Dividend | GNL Dividend
