GSL Dividend Type Payments
Although GSL has no upcoming (meaning, Board-approved and announced) dividends, you can sell covered calls on Global Ship Lease Inc New Class A Common Shares 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 Ship Lease Inc New Class A Common Shares (GSL) | ||||||
---|---|---|---|---|---|---|
Bid | Ask | Last | Change | Volume | P/E | Market Cap |
24.75 | 26.27 | 25.31 | -0.31 | 411K | - | 0.5B |
GSL Dividend-Like Income Using Covered Calls
With GSL at 25.31, 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% | 0.76 | 0.2 |
5% | 1.27 | 0.3 |
10% | 2.53 | 0.7 |
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 GSL Using Covered Calls | ||||||
---|---|---|---|---|---|---|
Expiration | Strike | Call Bid | Days | Cents/Day | Upside Potential | |
Nov 15 | 27.00 | 0.35 | 39 | 0.9 | 0.73 (2.9%) | |
Oct 18 | 27.00 | 0.05 | 11 | 0.5 | 0.73 (2.9%) |
5% Yield On GSL Using Covered Calls | ||||||
---|---|---|---|---|---|---|
Expiration | Strike | Call Bid | Days | Cents/Day | Upside Potential | |
Nov 15 | 27.00 | 0.35 | 39 | 0.9 | 0.73 (2.9%) | |
Oct 18 | 27.00 | 0.05 | 11 | 0.5 | 0.73 (2.9%) |
10% Yield On GSL Using Covered Calls | ||||||
---|---|---|---|---|---|---|
Expiration | Strike | Call Bid | Days | Cents/Day | Upside Potential | |
Nov 15 | 27.00 | 0.35 | 39 | 0.9 | 0.73 (2.9%) | |
Dec 20 | 27.00 | 0.65 | 74 | 0.9 | 0.73 (2.9%) |
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Top 10 Open Interest For Oct 18 Expiration | Top 5 High Yield | |||||
---|---|---|---|---|---|---|
1. | NVDA dividend | 6. | EEM dividend | 1. | ASTS dividend | |
2. | IWM dividend | 7. | SLV dividend | 2. | IREN dividend | |
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5. | QQQ dividend | 10. | TSLA dividend | 5. | SERV dividend |
Want more examples? GSK Dividend | GSLC Dividend