Z Dividend Type Payments

Although Z has no upcoming (meaning, Board-approved and announced) dividends, you can sell covered calls on Zillow Group, Inc. - Class C Capital Stock to create 12 extra dividend type payments per year to boost its yield. Let's look at some recent prices (last updated Tue 4:16 PM ET):

Zillow Group, Inc. - Class C Capital Stock (Z)
Bid	Ask	Last	Change	Volume	P/E	Market Cap
65.71	66.28	65.88	-2.65	3.3M	-	17B

Z Dividend-Like Income Using Covered Calls

With Z at 65.88, 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%	1.98	0.5
5%	3.29	0.9
10%	6.59	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 Z Using Covered Calls
Expiration	Strike	Call Bid	Days	Cents/Day	Upside Potential
May 15	67.50	6.50	116	5.6	1.22 (1.9%)
Jun 18	67.50	6.30	150	4.2	1.22 (1.9%)

5% Yield On Z Using Covered Calls
Expiration	Strike	Call Bid	Days	Cents/Day	Upside Potential
May 15	67.50	6.50	116	5.6	1.22 (1.9%)
Jun 18	67.50	6.30	150	4.2	1.22 (1.9%)

10% Yield On Z Using Covered Calls
Expiration	Strike	Call Bid	Days	Cents/Day	Upside Potential
May 15	67.50	6.50	116	5.6	1.22 (1.9%)
Jun 18	67.50	6.30	150	4.2	1.22 (1.9%)

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