CSGP Dividend Type Payments

COSTAR GROUP dividend

Although CSGP has no upcoming (meaning, Board-approved and announced) dividends, you can sell covered calls on COSTAR GROUP to create 12 extra dividend type payments per year to boost its yield. Let's look at some recent prices (last updated Thu 4:16 PM ET):

COSTAR GROUP (CSGP)
Bid Ask Last Change Volume P/E Market Cap
388.53 388.53 388.53 -4.39 244K 79 14B

CSGP Dividend-Like Income Using Covered Calls

With CSGP at 388.53, here's a table showing how big the annual "dividend" (ie. 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% 11.66 3.2
5% 19.43 5.3
10% 38.85 10.6

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 CSGP Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Nov 16 420.00 1.00 30 3.3 31.47 (8.1%)
Jan 18 440.00 4.10 93 4.4 51.47 (13.2%)
5% Yield On CSGP Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Nov 16 410.00 3.90 30 13.0 21.47 (5.5%)
Jan 18 430.00 5.10 93 5.5 41.47 (10.7%)
10% Yield On CSGP Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Nov 16 410.00 3.90 30 13.0 21.47 (5.5%)
Jan 18 400.00 16.00 93 17.2 11.47 (3.0%)

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Want more examples? CSFL Dividend | CSGS Dividend