GRPN Dividend Type Payments

Groupon, Inc. dividend

Although GRPN has no upcoming (meaning, Board-approved and announced) dividends, you can sell covered calls on Groupon, Inc. to create 12 extra dividend type payments per year to boost its yield. Let's look at some recent prices (last updated Fri 1:50 PM ET):

Groupon, Inc. (GRPN)
Bid Ask Last Change Volume P/E Market Cap
10.93 10.96 10.96 +0.06 471K - 0.4B

GRPN Dividend-Like Income Using Covered Calls

With GRPN at 10.96, 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% 0.33 0.1
5% 0.55 0.2
10% 1.10 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 GRPN Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Dec 6 11.00 1.35 29 4.7 0.04 (0.4%)
Dec 13 11.00 1.35 36 3.8 0.04 (0.4%)
5% Yield On GRPN Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Dec 6 11.00 1.35 29 4.7 0.04 (0.4%)
Dec 13 11.00 1.35 36 3.8 0.04 (0.4%)
10% Yield On GRPN Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Dec 6 11.00 1.35 29 4.7 0.04 (0.4%)
Dec 13 11.00 1.35 36 3.8 0.04 (0.4%)

Want to increase dividends with covered calls?  Sign Up For A Free Trial

 
 
Top 10 Open Interest For Nov 15 Expiration     Top 5 High Yield
1.FXI dividend 6.EEM dividend   1.GRPN dividend
2.NVDA dividend 7.TLT dividend   2.ZI dividend
3.SLV dividend 8.TSLA dividend   3.APLT dividend
4.SPY dividend 9.XLF dividend   4.UPST dividend
5.IWM dividend 10.EWZ dividend   5.FSLY dividend

Want more examples? GROW Dividend | GRWG Dividend