GOEX Dividend Type Payments
Although GOEX has no upcoming (meaning, Board-approved and announced) dividends, you can sell covered calls on Global X Gold Explorers ETF to create 12 extra dividend type payments per year to boost its yield. Let's look at some recent prices (last updated Fri 1:30 PM ET):
| Global X Gold Explorers ETF (GOEX) |
|---|
| Bid |
Ask |
Last |
Change |
Volume |
P/E |
Market Cap |
| 67.42 |
68.06 |
67.74 |
+0.21 |
7K |
- |
0.1B |
GOEX Dividend-Like Income Using Covered Calls
With GOEX at 67.74, 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% |
2.03 |
0.6 |
| 5% |
3.39 |
0.9 |
| 10% |
6.77 |
1.9 |
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 GOEX Using Covered Calls |
|---|
| Expiration |
Strike |
Call Bid |
Days |
Cents/Day |
Upside Potential |
| Dec 19 |
68.00 |
1.50 |
29 |
5.0 |
0.00 (0.0%) |
| Jan 16 |
70.00 |
2.30 |
57 |
4.0 |
1.94 (2.9%) |
| 5% Yield On GOEX Using Covered Calls |
|---|
| Expiration |
Strike |
Call Bid |
Days |
Cents/Day |
Upside Potential |
| Dec 19 |
68.00 |
1.50 |
29 |
5.0 |
0.00 (0.0%) |
| Jan 16 |
70.00 |
2.30 |
57 |
4.0 |
1.94 (2.9%) |
| 10% Yield On GOEX Using Covered Calls |
|---|
| Expiration |
Strike |
Call Bid |
Days |
Cents/Day |
Upside Potential |
| Dec 19 |
68.00 |
1.50 |
29 |
5.0 |
0.00 (0.0%) |
| Jan 16 |
70.00 |
2.30 |
57 |
4.0 |
1.94 (2.9%) |
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