ZG Dividend Type Payments
Although ZG has no upcoming (meaning, Board-approved and announced) dividends, you can sell covered calls on Zillow Group, 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 Thu 3:45 PM ET):
| Zillow Group, Inc. - Class A (ZG) |
|---|
| Bid |
Ask |
Last |
Change |
Volume |
P/E |
Market Cap |
| 43.47 |
43.52 |
43.49 |
-1.60 |
2.1M |
- |
11B |
ZG Dividend-Like Income Using Covered Calls
With ZG at 43.49, 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% |
1.30 |
0.4 |
| 5% |
2.17 |
0.6 |
| 10% |
4.35 |
1.2 |
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 ZG Using Covered Calls |
|---|
| Expiration |
Strike |
Call Bid |
Days |
Cents/Day |
Upside Potential |
| Feb 20 |
45.00 |
0.70 |
9 |
7.8 |
1.48 (3.4%) |
| Mar 20 |
45.00 |
2.15 |
37 |
5.8 |
1.48 (3.4%) |
| 5% Yield On ZG Using Covered Calls |
|---|
| Expiration |
Strike |
Call Bid |
Days |
Cents/Day |
Upside Potential |
| Feb 20 |
45.00 |
0.70 |
9 |
7.8 |
1.48 (3.4%) |
| Mar 20 |
45.00 |
2.15 |
37 |
5.8 |
1.48 (3.4%) |
| 10% Yield On ZG Using Covered Calls |
|---|
| Expiration |
Strike |
Call Bid |
Days |
Cents/Day |
Upside Potential |
| Feb 20 |
45.00 |
0.70 |
9 |
7.8 |
1.48 (3.4%) |
| Mar 20 |
45.00 |
2.15 |
37 |
5.8 |
1.48 (3.4%) |
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