GIII Dividend Type Payments
Although GIII has no upcoming (meaning, Board-approved and announced) dividends, you can sell covered calls on G-III Apparel Group, LTD. to create 12 extra dividend type payments per year to boost its yield. Let's look at some recent prices (last updated Mon 4:16 PM ET):
| G-III Apparel Group, LTD. (GIII) |
|---|
| Bid |
Ask |
Last |
Change |
Volume |
P/E |
Market Cap |
| 9.75 |
29.00 |
24.60 |
+0.38 |
474K |
5.8 |
1.1B |
GIII Dividend-Like Income Using Covered Calls
With GIII at 24.60, 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% |
0.74 |
0.2 |
| 5% |
1.23 |
0.3 |
| 10% |
2.46 |
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 GIII Using Covered Calls |
|---|
| Expiration |
Strike |
Call Bid |
Days |
Cents/Day |
Upside Potential |
| Sep 19 |
30.00 |
1.45 |
152 |
1.0 |
1.00 (4.1%) |
| Dec 19 |
30.00 |
2.25 |
243 |
0.9 |
1.00 (4.1%) |
| 5% Yield On GIII Using Covered Calls |
|---|
| Expiration |
Strike |
Call Bid |
Days |
Cents/Day |
Upside Potential |
| Sep 19 |
30.00 |
1.45 |
152 |
1.0 |
1.00 (4.1%) |
| Dec 19 |
30.00 |
2.25 |
243 |
0.9 |
1.00 (4.1%) |
| 10% Yield On GIII Using Covered Calls |
|---|
| Expiration |
Strike |
Call Bid |
Days |
Cents/Day |
Upside Potential |
| Sep 19 |
30.00 |
1.45 |
152 |
1.0 |
1.00 (4.1%) |
| Dec 19 |
30.00 |
2.25 |
243 |
0.9 |
1.00 (4.1%) |
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