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%)

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