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 10:55 AM ET):

Zillow Group, Inc. - Class C Capital Stock (Z)
Bid	Ask	Last	Change	Volume	P/E	Market Cap
72.66	72.74	72.67	-0.86	388K	-	18B

Z Dividend-Like Income Using Covered Calls

With Z at 72.67, 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%	2.18	0.6
5%	3.63	1.0
10%	7.27	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 Z Using Covered Calls
Expiration	Strike	Call Bid	Days	Cents/Day	Upside Potential
Dec 19	72.50	2.31	18	11.5	0.00 (0.0%)
May 15	100.00	1.58	165	1.0	27.26 (37.5%)

5% Yield On Z Using Covered Calls
Expiration	Strike	Call Bid	Days	Cents/Day	Upside Potential
Dec 19	72.50	2.31	18	11.5	0.00 (0.0%)
May 15	72.50	8.95	165	5.3	0.00 (0.0%)

10% Yield On Z Using Covered Calls
Expiration	Strike	Call Bid	Days	Cents/Day	Upside Potential
Dec 19	72.50	2.31	18	11.5	0.00 (0.0%)
May 15	72.50	8.95	165	5.3	0.00 (0.0%)

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Want more examples? YYY Dividend | ZBH Dividend