RGLD Dividend

Royal Gold, Inc. dividend

Although RGLD has a dividend of 0.45 with an ex-dividend date of Oct 3, you can sell covered calls on Royal Gold, Inc. 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):

Royal Gold, Inc. (RGLD)
Bid Ask Last Change Volume P/E Market Cap
185.24 188.40 186.18 +1.17 595K 27 12B

RGLD Dividend-Like Income Using Covered Calls

With RGLD at 186.18, 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% 5.59 1.5
5% 9.31 2.6
10% 18.62 5.1

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 RGLD Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Oct 17 190.00 5.40 38 14.2 1.60 (0.9%)
Sep 19 190.00 1.95 10 19.5 1.60 (0.9%)
5% Yield On RGLD Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Oct 17 190.00 5.40 38 14.2 1.60 (0.9%)
Sep 19 190.00 1.95 10 19.5 1.60 (0.9%)
10% Yield On RGLD Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Oct 17 190.00 5.40 38 14.2 1.60 (0.9%)
Sep 19 190.00 1.95 10 19.5 1.60 (0.9%)

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