GLAD Dividend

Although GLAD has a dividend of 0.17 with an ex-dividend date of Mar 19, you can sell covered calls on Gladstone Capital Corporation - 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 4:16 PM ET):

Gladstone Capital Corporation - Closed End Fund (GLAD)
Bid	Ask	Last	Change	Volume	P/E	Market Cap
28.71	29.14	28.79	-0.22	66K	-	0.6B

GLAD Dividend-Like Income Using Covered Calls

With GLAD at 28.79, 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%	0.86	0.2
5%	1.44	0.4
10%	2.88	0.8

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 GLAD Using Covered Calls
Expiration	Strike	Call Bid	Days	Cents/Day	Upside Potential
Sep 19	30.00	1.10	211	0.5	0.86 (3.0%)
Jun 20	29.60	0.80	120	0.7	0.46 (1.6%)

5% Yield On GLAD Using Covered Calls
Expiration	Strike	Call Bid	Days	Cents/Day	Upside Potential
Sep 19	30.00	1.10	211	0.5	0.86 (3.0%)
Jun 20	29.60	0.80	120	0.7	0.46 (1.6%)

10% Yield On GLAD Using Covered Calls
Expiration	Strike	Call Bid	Days	Cents/Day	Upside Potential
Mar 21	29.60	0.30	29	1.0	0.46 (1.6%)

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Want more examples? GL Dividend | GLD Dividend