GOOG Dividend Type Payments

ALPHABET INC CL C dividend

Although GOOG has no upcoming (meaning, Board-approved and announced) dividends, you can sell covered calls on ALPHABET INC CL C 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):

ALPHABET INC CL C (GOOG)
Bid Ask Last Change Volume P/E Market Cap
1,061.40 1,062.25 1,061.49 -3.22 1.6M 40 730B

GOOG Dividend-Like Income Using Covered Calls

With GOOG at 1,061.49, 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% 0.03 0.0
5% 0.05 0.0
10% 0.10 0.0

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 GOOG Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Nov 23 1115.00 0.70 8 8.8 52.75 (5.0%)
Nov 30 1145.00 1.40 15 9.3 82.75 (7.8%)
5% Yield On GOOG Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Nov 23 1107.50 1.30 8 16.3 45.25 (4.3%)
Nov 30 1132.50 2.30 15 15.3 70.25 (6.6%)
10% Yield On GOOG Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Nov 23 1097.50 2.55 8 31.9 35.25 (3.3%)
Nov 30 1115.00 4.40 15 29.3 52.75 (5.0%)

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Top 10 Open Interest For Dec 21 Expiration     Top 5 High Yield
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Want more examples? GOOD Dividend | GOOGL Dividend