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 Tue 3:05 PM ET):
Goosehead Insurance, Inc. - Class A (GSHD) |
Bid |
Ask |
Last |
Change |
Volume |
P/E |
Market Cap |
88.78 |
89.23 |
88.89 |
+1.25 |
120K |
127 |
3.3B |
GSHD Dividend-Like Income Using Covered Calls
With GSHD at 88.89, 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% |
2.67 |
0.7 |
5% |
4.44 |
1.2 |
10% |
8.89 |
2.4 |
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 |
Nov 15 |
100.00 |
1.85 |
39 |
4.7 |
10.77 (12.1%) |
Oct 18 |
90.00 |
1.25 |
11 |
11.4 |
0.77 (0.9%) |
5% Yield On GSHD Using Covered Calls |
Expiration |
Strike |
Call Bid |
Days |
Cents/Day |
Upside Potential |
Nov 15 |
100.00 |
1.85 |
39 |
4.7 |
10.77 (12.1%) |
Oct 18 |
90.00 |
1.25 |
11 |
11.4 |
0.77 (0.9%) |
10% Yield On GSHD Using Covered Calls |
Expiration |
Strike |
Call Bid |
Days |
Cents/Day |
Upside Potential |
Nov 15 |
100.00 |
1.85 |
39 |
4.7 |
10.77 (12.1%) |
Oct 18 |
90.00 |
1.25 |
11 |
11.4 |
0.77 (0.9%) |
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