GRFS Dividend Type Payments
Although GRFS has no upcoming (meaning, Board-approved and announced) dividends, you can sell covered calls on Grifols, S.A. - American Depositary Shares 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):
| Grifols, S.A. - American Depositary Shares (GRFS) |
|---|
| Bid |
Ask |
Last |
Change |
Volume |
P/E |
Market Cap |
| 7.21 |
7.60 |
7.29 |
-0.31 |
588K |
- |
0.0B |
GRFS Dividend-Like Income Using Covered Calls
With GRFS at 7.29, 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% |
0.22 |
0.1 |
| 5% |
0.36 |
0.1 |
| 10% |
0.73 |
0.2 |
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 GRFS Using Covered Calls |
|---|
| Expiration |
Strike |
Call Bid |
Days |
Cents/Day |
Upside Potential |
| Aug 15 |
11.00 |
0.20 |
218 |
0.1 |
3.40 (46.6%) |
| May 16 |
8.00 |
0.65 |
127 |
0.5 |
0.40 (5.5%) |
| 5% Yield On GRFS Using Covered Calls |
|---|
| Expiration |
Strike |
Call Bid |
Days |
Cents/Day |
Upside Potential |
| Aug 15 |
9.00 |
0.55 |
218 |
0.3 |
1.40 (19.2%) |
| May 16 |
8.00 |
0.65 |
127 |
0.5 |
0.40 (5.5%) |
| 10% Yield On GRFS Using Covered Calls |
|---|
| Expiration |
Strike |
Call Bid |
Days |
Cents/Day |
Upside Potential |
| Aug 15 |
9.00 |
0.55 |
218 |
0.3 |
1.40 (19.2%) |
| May 16 |
8.00 |
0.65 |
127 |
0.5 |
0.40 (5.5%) |
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