GSG Dividend Type Payments

iShares GSCI Commodity-Indexed Trust Fund dividend

Although GSG has no upcoming (meaning, Board-approved and announced) dividends, you can sell covered calls on iShares GSCI Commodity-Indexed Trust Fund 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):

iShares GSCI Commodity-Indexed Trust Fund (GSG)
Bid Ask Last Change Volume P/E Market Cap
21.87 22.35 21.87 -0.19 838K 23 0.5B

GSG Dividend-Like Income Using Covered Calls

With GSG at 21.87, 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% 0.66 0.2
5% 1.09 0.3
10% 2.19 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 GSG Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Apr 17 23.00 0.10 39 0.3 0.65 (3.0%)
Oct 17 23.00 0.65 222 0.3 0.65 (3.0%)
5% Yield On GSG Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Jul 18 23.00 0.50 131 0.4 0.65 (3.0%)

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