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 Fri 4:16 PM ET):

ALPHABET INC CL A (GOOGL)
Bid Ask Last Change Volume P/E Market Cap
1,195.00 1,197.87 1,197.88 -1.22 1.8M 50 829B

GOOGL Dividend-Like Income Using Covered Calls

With GOOGL at 1,197.88, 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
Jul 27 1320.00 0.85 8 10.6 122.13 (10.2%)
Aug 3 1320.00 2.00 15 13.3 122.13 (10.2%)
5% Yield On GOOGL Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Jul 27 1305.00 1.45 8 18.1 107.13 (8.9%)
Aug 3 1300.00 3.40 15 22.7 102.13 (8.5%)
10% Yield On GOOGL Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Jul 27 1285.00 2.65 8 33.1 87.13 (7.3%)
Aug 3 1280.00 5.20 15 34.7 82.13 (6.9%)

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