GSK Dividend
Although GSK has a dividend of 0.42 with an ex-dividend date of Nov 14, you can sell covered calls on GSK plc American Depositary Shares (Each representing two Ordinary Share 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):
| GSK plc American Depositary Shares (Each representing two Ordinary Share (GSK) | ||||||
|---|---|---|---|---|---|---|
| Bid | Ask | Last | Change | Volume | P/E | Market Cap |
| 45.90 | 47.10 | 46.86 | -0.08 | 5.0M | - | 143B |
GSK Dividend-Like Income Using Covered Calls
With GSK at 46.86, 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% | 1.41 | 0.4 |
| 5% | 2.34 | 0.6 |
| 10% | 4.69 | 1.3 |
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 GSK Using Covered Calls | ||||||
|---|---|---|---|---|---|---|
| Expiration | Strike | Call Bid | Days | Cents/Day | Upside Potential | |
| Dec 5 | 47.00 | 1.10 | 36 | 2.8 | 0.00 (0.0%) | |
| Nov 7 | 47.00 | 0.50 | 8 | 5.0 | 0.00 (0.0%) | |
| 5% Yield On GSK Using Covered Calls | ||||||
|---|---|---|---|---|---|---|
| Expiration | Strike | Call Bid | Days | Cents/Day | Upside Potential | |
| Dec 5 | 47.00 | 1.10 | 36 | 2.8 | 0.00 (0.0%) | |
| Nov 7 | 47.00 | 0.50 | 8 | 5.0 | 0.00 (0.0%) | |
| 10% Yield On GSK Using Covered Calls | ||||||
|---|---|---|---|---|---|---|
| Expiration | Strike | Call Bid | Days | Cents/Day | Upside Potential | |
| Dec 5 | 47.00 | 1.10 | 36 | 2.8 | 0.00 (0.0%) | |
| Nov 7 | 47.00 | 0.50 | 8 | 5.0 | 0.00 (0.0%) | |
Want to increase dividends with covered calls? Sign Up For A Free Trial
| Top 10 Open Interest For Nov 21 Expiration | Top 5 High Yield | |||||
|---|---|---|---|---|---|---|
| 1. | IBIT dividend | 6. | INTC dividend | 1. | GHRS dividend | |
| 2. | KVUE dividend | 7. | TLT dividend | 2. | IREN dividend | |
| 3. | NVDA dividend | 8. | ASST dividend | 3. | SRPT dividend | |
| 4. | SLV dividend | 9. | EEM dividend | 4. | UPST dividend | |
| 5. | GLD dividend | 10. | HYG dividend | 5. | HUT dividend | |
Want more examples? GSJY Dividend | GSL Dividend
