CLOU Dividend Type Payments
Although CLOU has no upcoming (meaning, Board-approved and announced) dividends, you can sell covered calls on Global X Cloud Computing ETF to create 12 extra dividend type payments per year to boost its yield. Let's look at some recent prices (last updated Mon 10:30 AM ET):
| Global X Cloud Computing ETF (CLOU) |
|---|
| Bid |
Ask |
Last |
Change |
Volume |
P/E |
Market Cap |
| 22.59 |
22.60 |
22.58 |
-0.12 |
30K |
- |
0.5B |
CLOU Dividend-Like Income Using Covered Calls
With CLOU at 22.58, 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% |
0.68 |
0.2 |
| 5% |
1.13 |
0.3 |
| 10% |
2.26 |
0.6 |
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 CLOU Using Covered Calls |
|---|
| Expiration |
Strike |
Call Bid |
Days |
Cents/Day |
Upside Potential |
| Jun 20 |
23.00 |
1.35 |
215 |
0.6 |
0.40 (1.8%) |
| Mar 21 |
24.00 |
0.45 |
124 |
0.4 |
1.40 (6.2%) |
| 5% Yield On CLOU Using Covered Calls |
|---|
| Expiration |
Strike |
Call Bid |
Days |
Cents/Day |
Upside Potential |
| Jun 20 |
23.00 |
1.35 |
215 |
0.6 |
0.40 (1.8%) |
| Mar 21 |
24.00 |
0.45 |
124 |
0.4 |
1.40 (6.2%) |
| 10% Yield On CLOU Using Covered Calls |
|---|
| Expiration |
Strike |
Call Bid |
Days |
Cents/Day |
Upside Potential |
| Jun 20 |
23.00 |
1.35 |
215 |
0.6 |
0.40 (1.8%) |
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