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 Tue 4:16 PM ET):
| Global X Gold Explorers ETF (GOEX) |
|---|
| Bid |
Ask |
Last |
Change |
Volume |
P/E |
Market Cap |
| 69.57 |
76.94 |
72.78 |
-0.15 |
28K |
- |
0.1B |
GOEX Dividend-Like Income Using Covered Calls
With GOEX at 72.78, 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% |
2.18 |
0.6 |
| 5% |
3.64 |
1.0 |
| 10% |
7.28 |
2.0 |
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 GOEX Using Covered Calls |
|---|
| Expiration |
Strike |
Call Bid |
Days |
Cents/Day |
Upside Potential |
| Jan 16 |
80.00 |
2.00 |
95 |
2.1 |
3.06 (4.2%) |
| Apr 17 |
80.00 |
4.50 |
186 |
2.4 |
3.06 (4.2%) |
| 5% Yield On GOEX Using Covered Calls |
|---|
| Expiration |
Strike |
Call Bid |
Days |
Cents/Day |
Upside Potential |
| Jan 16 |
80.00 |
2.00 |
95 |
2.1 |
3.06 (4.2%) |
| Apr 17 |
80.00 |
4.50 |
186 |
2.4 |
3.06 (4.2%) |
| 10% Yield On GOEX Using Covered Calls |
|---|
| Expiration |
Strike |
Call Bid |
Days |
Cents/Day |
Upside Potential |
| Jan 16 |
80.00 |
2.00 |
95 |
2.1 |
3.06 (4.2%) |
| Apr 17 |
80.00 |
4.50 |
186 |
2.4 |
3.06 (4.2%) |
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