GPI Dividend

Although GPI has a dividend of 0.50 with an ex-dividend date of Sep 2, you can sell covered calls on Group 1 Automotive, Inc. to create 12 extra dividend type payments per year to boost its yield. Let's look at some recent prices (last updated Wed 4:16 PM ET):

Group 1 Automotive, Inc. (GPI)
Bid	Ask	Last	Change	Volume	P/E	Market Cap
438.24	472.81	459.54	+15.33	142K	12	12B

GPI Dividend-Like Income Using Covered Calls

With GPI at 459.54, 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%	13.79	3.8
5%	22.98	6.3
10%	45.95	12.6

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 GPI Using Covered Calls
Expiration	Strike	Call Bid	Days	Cents/Day	Upside Potential
Oct 17	480.00	13.30	66	20.2	7.19 (1.6%)
Sep 19	480.00	7.20	38	18.9	7.19 (1.6%)

5% Yield On GPI Using Covered Calls
Expiration	Strike	Call Bid	Days	Cents/Day	Upside Potential
Oct 17	480.00	13.30	66	20.2	7.19 (1.6%)
Sep 19	480.00	7.20	38	18.9	7.19 (1.6%)

10% Yield On GPI Using Covered Calls
Expiration	Strike	Call Bid	Days	Cents/Day	Upside Potential
Oct 17	480.00	13.30	66	20.2	7.19 (1.6%)
Sep 19	480.00	7.20	38	18.9	7.19 (1.6%)

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Want more examples? GPC Dividend | GPK Dividend