GSL Dividend
Although GSL has a dividend of 0.53 with an ex-dividend date of Aug 22, 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 Wed 4:16 PM ET):
| Global Ship Lease Inc New Class A Common Shares (GSL) | ||||||
|---|---|---|---|---|---|---|
| Bid | Ask | Last | Change | Volume | P/E | Market Cap |
| 30.71 | 30.98 | 30.70 | +0.02 | 416K | - | 0.6B |
GSL Dividend-Like Income Using Covered Calls
With GSL at 30.70, 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% | 0.92 | 0.3 |
| 5% | 1.54 | 0.4 |
| 10% | 3.07 | 0.8 |
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 | |
| Aug 15 | 31.00 | 0.10 | 3 | 3.3 | 0.02 (0.1%) | |
| Sep 19 | 31.00 | 0.50 | 38 | 1.3 | 0.02 (0.1%) | |
| 5% Yield On GSL Using Covered Calls | ||||||
|---|---|---|---|---|---|---|
| Expiration | Strike | Call Bid | Days | Cents/Day | Upside Potential | |
| Aug 15 | 31.00 | 0.10 | 3 | 3.3 | 0.02 (0.1%) | |
| Sep 19 | 31.00 | 0.50 | 38 | 1.3 | 0.02 (0.1%) | |
| 10% Yield On GSL Using Covered Calls | ||||||
|---|---|---|---|---|---|---|
| Expiration | Strike | Call Bid | Days | Cents/Day | Upside Potential | |
| Aug 15 | 31.00 | 0.10 | 3 | 3.3 | 0.02 (0.1%) | |
| Sep 19 | 31.00 | 0.50 | 38 | 1.3 | 0.02 (0.1%) | |
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| Top 10 Open Interest For Aug 15 Expiration | Top 5 High Yield | |||||
|---|---|---|---|---|---|---|
| 1. | NVDA dividend | 6. | IBIT dividend | 1. | COHR dividend | |
| 2. | SLV dividend | 7. | INTC dividend | 2. | QUBT dividend | |
| 3. | SPY dividend | 8. | GLD dividend | 3. | DLO dividend | |
| 4. | TSLA dividend | 9. | AMZN dividend | 4. | RCAT dividend | |
| 5. | IWM dividend | 10. | QQQ dividend | 5. | CRML dividend | |
Want more examples? GSK Dividend | GSLC Dividend
