ZIP Dividend Type Payments
Although ZIP has no upcoming (meaning, Board-approved and announced) dividends, you can sell covered calls on ZipRecruiter, 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 Fri 4:16 PM ET):
ZipRecruiter, Inc. Class A (ZIP) | ||||||
---|---|---|---|---|---|---|
Bid | Ask | Last | Change | Volume | P/E | Market Cap |
9.29 | 10.16 | 9.79 | +0.31 | 406K | 34 | 1.0B |
ZIP Dividend-Like Income Using Covered Calls
With ZIP at 9.79, 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% | 0.29 | 0.1 |
5% | 0.49 | 0.1 |
10% | 0.98 | 0.3 |
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 ZIP Using Covered Calls | ||||||
---|---|---|---|---|---|---|
Expiration | Strike | Call Bid | Days | Cents/Day | Upside Potential | |
Jan 17 | 12.50 | 0.10 | 99 | 0.1 | 2.34 (23.9%) | |
Mar 21 | 12.50 | 0.35 | 162 | 0.2 | 2.34 (23.9%) |
5% Yield On ZIP Using Covered Calls | ||||||
---|---|---|---|---|---|---|
Expiration | Strike | Call Bid | Days | Cents/Day | Upside Potential | |
Mar 21 | 12.50 | 0.35 | 162 | 0.2 | 2.34 (23.9%) |
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Top 10 Open Interest For Oct 18 Expiration | Top 5 High Yield | |||||
---|---|---|---|---|---|---|
1. | NVDA dividend | 6. | EEM dividend | 1. | DJT dividend | |
2. | IWM dividend | 7. | SLV dividend | 2. | CPRI dividend | |
3. | FXI dividend | 8. | TSLA dividend | 3. | WOLF dividend | |
4. | SPY dividend | 9. | SMCI dividend | 4. | ARDX dividend | |
5. | QQQ dividend | 10. | HYG dividend | 5. | SAVA dividend |
Want more examples? ZION Dividend | ZLAB Dividend