GS Dividend Type Payments
Although GS has no upcoming (meaning, Board-approved and announced) dividends, you can sell covered calls on Goldman Sachs Group, Inc. (The) 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):
| Goldman Sachs Group, Inc. (The) (GS) | ||||||
|---|---|---|---|---|---|---|
| Bid | Ask | Last | Change | Volume | P/E | Market Cap |
| 532.00 | 533.72 | 531.66 | -28.01 | 5.2M | - | 175B |
GS Dividend-Like Income Using Covered Calls
With GS at 531.66, 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% | 15.95 | 4.4 |
| 5% | 26.58 | 7.3 |
| 10% | 53.17 | 14.6 |
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 GS Using Covered Calls | ||||||
|---|---|---|---|---|---|---|
| Expiration | Strike | Call Bid | Days | Cents/Day | Upside Potential | |
| Apr 4 | 535.00 | 21.75 | 26 | 83.7 | 1.28 (0.2%) | |
| Apr 11 | 535.00 | 23.50 | 33 | 71.2 | 1.28 (0.2%) | |
| 5% Yield On GS Using Covered Calls | ||||||
|---|---|---|---|---|---|---|
| Expiration | Strike | Call Bid | Days | Cents/Day | Upside Potential | |
| Apr 4 | 535.00 | 21.75 | 26 | 83.7 | 1.28 (0.2%) | |
| Apr 11 | 535.00 | 23.50 | 33 | 71.2 | 1.28 (0.2%) | |
| 10% Yield On GS Using Covered Calls | ||||||
|---|---|---|---|---|---|---|
| Expiration | Strike | Call Bid | Days | Cents/Day | Upside Potential | |
| Apr 4 | 535.00 | 21.75 | 26 | 83.7 | 1.28 (0.2%) | |
| Apr 11 | 535.00 | 23.50 | 33 | 71.2 | 1.28 (0.2%) | |
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| Top 10 Open Interest For Mar 21 Expiration | Top 5 High Yield | |||||
|---|---|---|---|---|---|---|
| 1. | NVDA dividend | 6. | KWEB dividend | 1. | WOLF dividend | |
| 2. | SPY dividend | 7. | QQQ dividend | 2. | QBTS dividend | |
| 3. | IWM dividend | 8. | INTC dividend | 3. | CLSK dividend | |
| 4. | FXI dividend | 9. | TSLA dividend | 4. | GRPN dividend | |
| 5. | EEM dividend | 10. | SLV dividend | 5. | ADBE dividend | |
Want more examples? GRWG Dividend | GSAT Dividend
