GIL Dividend

Although GIL has a dividend of 0.21 with an ex-dividend date of Nov 21, you can sell covered calls on Gildan Activewear, Inc. Class A Sub. Vot. to create 12 extra dividend type payments per year to boost its yield. Let's look at some recent prices (last updated Fri 4:16 PM ET):

Gildan Activewear, Inc. Class A Sub. Vot. (GIL)
Bid	Ask	Last	Change	Volume	P/E	Market Cap
47.00	48.48	48.29	+0.16	438K	20	11B

GIL Dividend-Like Income Using Covered Calls

With GIL at 48.29, 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%	1.45	0.4
5%	2.41	0.7
10%	4.83	1.3

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 GIL Using Covered Calls
Expiration	Strike	Call Bid	Days	Cents/Day	Upside Potential
Dec 20	50.00	0.50	36	1.4	1.52 (3.1%)
Jan 17	50.00	0.30	64	0.5	1.52 (3.1%)

5% Yield On GIL Using Covered Calls
Expiration	Strike	Call Bid	Days	Cents/Day	Upside Potential
Dec 20	50.00	0.50	36	1.4	1.52 (3.1%)
Mar 21	50.00	1.85	127	1.5	1.52 (3.1%)

10% Yield On GIL Using Covered Calls
Expiration	Strike	Call Bid	Days	Cents/Day	Upside Potential
Dec 20	50.00	0.50	36	1.4	1.52 (3.1%)
Mar 21	50.00	1.85	127	1.5	1.52 (3.1%)

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