GOOGL Dividend Type Payments

ALPHABET INC CL A dividend

Although GOOGL has no upcoming (meaning, Board-approved and announced) dividends, you can sell covered calls on ALPHABET INC CL A to create 12 extra dividend type payments per year to boost its yield. Let's look at some recent prices (last updated Mon 1:25 PM ET):

ALPHABET INC CL A (GOOGL)
Bid Ask Last Change Volume P/E Market Cap
1,051.43 1,051.78 1,051.50 -25.52 935K 40 757B

GOOGL Dividend-Like Income Using Covered Calls

With GOOGL at 1,051.50, 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 GOOGL Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Nov 16 1122.50 0.45 5 9.0 70.72 (6.7%)
Nov 23 1137.50 1.20 12 10.0 85.72 (8.2%)
5% Yield On GOOGL Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Nov 16 1115.00 0.75 5 15.0 63.22 (6.0%)
Nov 23 1127.50 1.85 12 15.4 75.72 (7.2%)
10% Yield On GOOGL Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Nov 16 1102.50 1.55 5 31.0 50.72 (4.8%)
Nov 23 1110.00 3.80 12 31.7 58.22 (5.5%)

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Top 10 Open Interest For Nov 16 Expiration     Top 5 High Yield
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3.EWZ dividend 8.FXI dividend   3.CRON dividend
4.QQQ dividend 9.BAC dividend   4.UVXY dividend
5.SPX dividend 10.VXX dividend   5.TLRY dividend

Want more examples? GOOG Dividend | GOOS Dividend