GDYN Dividend Type Payments
Although GDYN has no upcoming (meaning, Board-approved and announced) dividends, you can sell covered calls on Grid Dynamics Holdings, Inc. - Class A to create 12 extra dividend type payments per year to boost its yield. Let's look at some recent prices (last updated Wed 12:00 PM ET):
| Grid Dynamics Holdings, Inc. - Class A (GDYN) |
|---|
| Bid |
Ask |
Last |
Change |
Volume |
P/E |
Market Cap |
| 11.70 |
11.72 |
11.71 |
+0.20 |
162K |
89 |
1.9B |
GDYN Dividend-Like Income Using Covered Calls
With GDYN at 11.71, 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% |
0.35 |
0.1 |
| 5% |
0.59 |
0.2 |
| 10% |
1.17 |
0.3 |
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 GDYN Using Covered Calls |
|---|
| Expiration |
Strike |
Call Bid |
Days |
Cents/Day |
Upside Potential |
| Aug 15 |
12.50 |
0.65 |
59 |
1.1 |
0.78 (6.7%) |
| Jul 18 |
12.50 |
0.25 |
31 |
0.8 |
0.78 (6.7%) |
| 5% Yield On GDYN Using Covered Calls |
|---|
| Expiration |
Strike |
Call Bid |
Days |
Cents/Day |
Upside Potential |
| Aug 15 |
12.50 |
0.65 |
59 |
1.1 |
0.78 (6.7%) |
| Jul 18 |
12.50 |
0.25 |
31 |
0.8 |
0.78 (6.7%) |
| 10% Yield On GDYN Using Covered Calls |
|---|
| Expiration |
Strike |
Call Bid |
Days |
Cents/Day |
Upside Potential |
| Aug 15 |
12.50 |
0.65 |
59 |
1.1 |
0.78 (6.7%) |
| Jul 18 |
12.50 |
0.25 |
31 |
0.8 |
0.78 (6.7%) |
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