GSHD Dividend Type Payments
Although GSHD has no upcoming (meaning, Board-approved and announced) dividends, you can sell covered calls on Goosehead Insurance, 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 4:16 PM ET):
| Goosehead Insurance, Inc. - Class A (GSHD) |
|---|
| Bid |
Ask |
Last |
Change |
Volume |
P/E |
Market Cap |
| 67.35 |
82.45 |
74.52 |
+1.59 |
226K |
64 |
2.7B |
GSHD Dividend-Like Income Using Covered Calls
With GSHD at 74.52, 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% |
2.24 |
0.6 |
| 5% |
3.73 |
1.0 |
| 10% |
7.45 |
2.0 |
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 GSHD Using Covered Calls |
|---|
| Expiration |
Strike |
Call Bid |
Days |
Cents/Day |
Upside Potential |
| Jun 18 |
100.00 |
1.05 |
163 |
0.6 |
17.55 (23.6%) |
| Mar 20 |
85.00 |
2.00 |
73 |
2.7 |
2.55 (3.4%) |
| 5% Yield On GSHD Using Covered Calls |
|---|
| Expiration |
Strike |
Call Bid |
Days |
Cents/Day |
Upside Potential |
| Jun 18 |
85.00 |
4.80 |
163 |
2.9 |
2.55 (3.4%) |
| Mar 20 |
85.00 |
2.00 |
73 |
2.7 |
2.55 (3.4%) |
| 10% Yield On GSHD Using Covered Calls |
|---|
| Expiration |
Strike |
Call Bid |
Days |
Cents/Day |
Upside Potential |
| Jun 18 |
85.00 |
4.80 |
163 |
2.9 |
2.55 (3.4%) |
| Mar 20 |
85.00 |
2.00 |
73 |
2.7 |
2.55 (3.4%) |
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