CGBD Dividend Type Payments
Although CGBD has no upcoming (meaning, Board-approved and announced) dividends, you can sell covered calls on Carlyle Secured Lending, Inc. - Closed End Fund to create 12 extra dividend type payments per year to boost its yield. Let's look at some recent prices (last updated Fri 1:35 PM ET):
| Carlyle Secured Lending, Inc. - Closed End Fund (CGBD) |
|---|
| Bid |
Ask |
Last |
Change |
Volume |
P/E |
Market Cap |
| 14.71 |
14.73 |
14.71 |
+0.12 |
100K |
9.2 |
0.7B |
CGBD Dividend-Like Income Using Covered Calls
With CGBD at 14.71, 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% |
0.44 |
0.1 |
| 5% |
0.74 |
0.2 |
| 10% |
1.47 |
0.4 |
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 CGBD Using Covered Calls |
|---|
| Expiration |
Strike |
Call Bid |
Days |
Cents/Day |
Upside Potential |
| May 16 |
15.00 |
0.15 |
22 |
0.7 |
0.27 (1.8%) |
| Nov 21 |
15.00 |
0.80 |
211 |
0.4 |
0.27 (1.8%) |
| 5% Yield On CGBD Using Covered Calls |
|---|
| Expiration |
Strike |
Call Bid |
Days |
Cents/Day |
Upside Potential |
| May 16 |
15.00 |
0.15 |
22 |
0.7 |
0.27 (1.8%) |
| Nov 21 |
15.00 |
0.80 |
211 |
0.4 |
0.27 (1.8%) |
| 10% Yield On CGBD Using Covered Calls |
|---|
| Expiration |
Strike |
Call Bid |
Days |
Cents/Day |
Upside Potential |
| May 16 |
15.00 |
0.15 |
22 |
0.7 |
0.27 (1.8%) |
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