GSG Dividend Type Payments

iShares GSCI Commodity-Indexed Trust Fund dividend

Although GSG has no upcoming (meaning, Board-approved and announced) dividends, you can sell covered calls on iShares GSCI Commodity-Indexed Trust Fund 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):

iShares GSCI Commodity-Indexed Trust Fund (GSG)
Bid Ask Last Change Volume P/E Market Cap
22.39 24.88 23.36 -0.13 195K - 1.0B

GSG Dividend-Like Income Using Covered Calls

With GSG at 23.36, 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% 0.70 0.2
5% 1.17 0.3
10% 2.34 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 GSG Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Apr 17 25.00 0.35 102 0.3 0.12 (0.5%)
Jul 17 25.00 0.60 193 0.3 0.12 (0.5%)
5% Yield On GSG Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Apr 17 25.00 0.35 102 0.3 0.12 (0.5%)
Feb 20 25.00 0.15 46 0.3 0.12 (0.5%)

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