GEO Dividend

GEO GROUP dividend

Although GEO has a dividend of 0.47 with an ex-dividend date of Oct 25, you can sell covered calls on GEO GROUP to create 12 extra dividend type payments per year to boost its yield. Let's look at some recent prices (last updated Tue 2:10 PM ET):

GEO GROUP (GEO)
Bid Ask Last Change Volume P/E Market Cap
24.71 24.72 24.72 +0.30 256K 20 3.0B

GEO Dividend-Like Income Using Covered Calls

With GEO at 24.72, 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% 0.74 0.2
5% 1.24 0.3
10% 2.47 0.7

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 GEO Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Nov 16 25.00 0.60 25 2.4 0.28 (1.1%)
Dec 21 25.00 0.85 60 1.4 0.28 (1.1%)
5% Yield On GEO Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Nov 16 25.00 0.60 25 2.4 0.28 (1.1%)
Dec 21 25.00 0.85 60 1.4 0.28 (1.1%)
10% Yield On GEO Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Nov 16 25.00 0.60 25 2.4 0.28 (1.1%)
Dec 21 25.00 0.85 60 1.4 0.28 (1.1%)

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Want more examples? GENE Dividend | GEOS Dividend