GSK Dividend
Although GSK has a dividend of 0.42 with an ex-dividend date of Nov 14, you can sell covered calls on GSK plc American Depositary Shares (Each representing two Ordinary Share to create 12 extra dividend type payments per year to boost its yield. Let's look at some recent prices (last updated Wed 4:16 PM ET):
| GSK plc American Depositary Shares (Each representing two Ordinary Share (GSK) | ||||||
|---|---|---|---|---|---|---|
| Bid | Ask | Last | Change | Volume | P/E | Market Cap |
| 48.07 | 48.30 | 48.07 | -0.34 | 3.6M | - | 147B |
GSK Dividend-Like Income Using Covered Calls
With GSK at 48.07, 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% | 1.44 | 0.4 |
| 5% | 2.40 | 0.7 |
| 10% | 4.81 | 1.3 |
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 GSK Using Covered Calls | ||||||
|---|---|---|---|---|---|---|
| Expiration | Strike | Call Bid | Days | Cents/Day | Upside Potential | |
| Dec 5 | 49.00 | 0.45 | 24 | 1.9 | 0.70 (1.5%) | |
| Dec 12 | 50.00 | 0.35 | 31 | 1.1 | 1.70 (3.5%) | |
| 5% Yield On GSK Using Covered Calls | ||||||
|---|---|---|---|---|---|---|
| Expiration | Strike | Call Bid | Days | Cents/Day | Upside Potential | |
| Dec 5 | 49.00 | 0.45 | 24 | 1.9 | 0.70 (1.5%) | |
| Dec 12 | 50.00 | 0.35 | 31 | 1.1 | 1.70 (3.5%) | |
| 10% Yield On GSK Using Covered Calls | ||||||
|---|---|---|---|---|---|---|
| Expiration | Strike | Call Bid | Days | Cents/Day | Upside Potential | |
| Dec 5 | 49.00 | 0.45 | 24 | 1.9 | 0.70 (1.5%) | |
| Nov 14 | 48.50 | 0.15 | 3 | 5.0 | 0.20 (0.4%) | |
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| Top 10 Open Interest For Nov 21 Expiration | Top 5 High Yield | |||||
|---|---|---|---|---|---|---|
| 1. | IBIT dividend | 6. | GLD dividend | 1. | ONDS dividend | |
| 2. | NVDA dividend | 7. | ASST dividend | 2. | SERV dividend | |
| 3. | KVUE dividend | 8. | SPY dividend | 3. | TMC dividend | |
| 4. | SLV dividend | 9. | INTC dividend | 4. | OKLO dividend | |
| 5. | TLT dividend | 10. | QQQ dividend | 5. | IREN dividend | |
Want more examples? GSJY Dividend | GSL Dividend
