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 3:20 PM ET):
| Goosehead Insurance, Inc. - Class A (GSHD) |
|---|
| Bid |
Ask |
Last |
Change |
Volume |
P/E |
Market Cap |
| 67.07 |
67.22 |
67.17 |
-1.79 |
158K |
61 |
2.6B |
GSHD Dividend-Like Income Using Covered Calls
With GSHD at 67.17, 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% |
2.02 |
0.6 |
| 5% |
3.36 |
0.9 |
| 10% |
6.72 |
1.8 |
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 |
| Oct 17 |
70.00 |
0.05 |
3 |
1.7 |
2.78 (4.1%) |
| Dec 19 |
70.00 |
5.00 |
66 |
7.6 |
2.78 (4.1%) |
| 5% Yield On GSHD Using Covered Calls |
|---|
| Expiration |
Strike |
Call Bid |
Days |
Cents/Day |
Upside Potential |
| Oct 17 |
70.00 |
0.05 |
3 |
1.7 |
2.78 (4.1%) |
| Dec 19 |
70.00 |
5.00 |
66 |
7.6 |
2.78 (4.1%) |
| 10% Yield On GSHD Using Covered Calls |
|---|
| Expiration |
Strike |
Call Bid |
Days |
Cents/Day |
Upside Potential |
| Dec 19 |
70.00 |
5.00 |
66 |
7.6 |
2.78 (4.1%) |
| Nov 21 |
70.00 |
4.10 |
38 |
10.8 |
2.78 (4.1%) |
Want to increase dividends with covered calls? Sign Up For A Free Trial
