GDRX Dividend Type Payments
Although GDRX has no upcoming (meaning, Board-approved and announced) dividends, you can sell covered calls on GoodRx Holdings, 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 Tue 11:40 AM ET):
| GoodRx Holdings, Inc. - Class A (GDRX) |
|---|
| Bid |
Ask |
Last |
Change |
Volume |
P/E |
Market Cap |
| 7.02 |
7.03 |
7.03 |
-0.12 |
83K |
- |
2.9B |
GDRX Dividend-Like Income Using Covered Calls
With GDRX at 7.03, 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% |
0.21 |
0.1 |
| 5% |
0.35 |
0.1 |
| 10% |
0.70 |
0.2 |
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 GDRX Using Covered Calls |
|---|
| Expiration |
Strike |
Call Bid |
Days |
Cents/Day |
Upside Potential |
| May 17 |
7.50 |
0.30 |
18 |
1.7 |
0.47 (6.7%) |
| Oct 18 |
10.00 |
0.35 |
172 |
0.2 |
2.97 (42.2%) |
| 5% Yield On GDRX Using Covered Calls |
|---|
| Expiration |
Strike |
Call Bid |
Days |
Cents/Day |
Upside Potential |
| May 17 |
7.50 |
0.30 |
18 |
1.7 |
0.47 (6.7%) |
| Oct 18 |
10.00 |
0.35 |
172 |
0.2 |
2.97 (42.2%) |
| 10% Yield On GDRX Using Covered Calls |
|---|
| Expiration |
Strike |
Call Bid |
Days |
Cents/Day |
Upside Potential |
| May 17 |
7.50 |
0.30 |
18 |
1.7 |
0.47 (6.7%) |
| Oct 18 |
10.00 |
0.35 |
172 |
0.2 |
2.97 (42.2%) |
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