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 Wed 4:16 PM ET):
| G-III Apparel Group, LTD. (GIII) |
|---|
| Bid |
Ask |
Last |
Change |
Volume |
P/E |
Market Cap |
| 23.60 |
24.00 |
23.55 |
-0.11 |
574K |
5.5 |
1.0B |
GIII Dividend-Like Income Using Covered Calls
With GIII at 23.55, 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% |
0.71 |
0.2 |
| 5% |
1.18 |
0.3 |
| 10% |
2.36 |
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 GIII Using Covered Calls |
|---|
| Expiration |
Strike |
Call Bid |
Days |
Cents/Day |
Upside Potential |
| Aug 15 |
25.00 |
0.50 |
38 |
1.3 |
1.00 (4.2%) |
| Jul 18 |
25.00 |
0.05 |
10 |
0.5 |
1.00 (4.2%) |
| 5% Yield On GIII Using Covered Calls |
|---|
| Expiration |
Strike |
Call Bid |
Days |
Cents/Day |
Upside Potential |
| Aug 15 |
25.00 |
0.50 |
38 |
1.3 |
1.00 (4.2%) |
| Jul 18 |
25.00 |
0.05 |
10 |
0.5 |
1.00 (4.2%) |
| 10% Yield On GIII Using Covered Calls |
|---|
| Expiration |
Strike |
Call Bid |
Days |
Cents/Day |
Upside Potential |
| Aug 15 |
25.00 |
0.50 |
38 |
1.3 |
1.00 (4.2%) |
| Sep 19 |
25.00 |
1.30 |
73 |
1.8 |
1.00 (4.2%) |
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