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 Fri 4:16 PM ET):

iShares GSCI Commodity-Indexed Trust Fund (GSG)
Bid Ask Last Change Volume P/E Market Cap
20.55 20.75 20.70 -0.11 99K 22 0.5B

GSG Dividend-Like Income Using Covered Calls

With GSG at 20.70, 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% 0.62 0.2
5% 1.04 0.3
10% 2.07 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
Dec 20 22.00 0.10 36 0.3 1.25 (6.0%)
Jan 17 21.00 0.45 64 0.7 0.25 (1.2%)
5% Yield On GSG Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Jan 17 21.00 0.45 64 0.7 0.25 (1.2%)
Apr 17 21.00 0.85 154 0.6 0.25 (1.2%)
10% Yield On GSG Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Jan 17 21.00 0.45 64 0.7 0.25 (1.2%)

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Want more examples? GSEW Dividend | GSHD Dividend