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 Tue 4:16 PM ET):

ALPHABET INC CL A (GOOGL)
Bid Ask Last Change Volume P/E Market Cap
1,191.73 1,194.50 1,193.89 +14.33 1.6M 50 818B

GOOGL Dividend-Like Income Using Covered Calls

With GOOGL at 1,193.89, 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
Sep 28 1235.00 0.40 4 10.0 40.50 (3.4%)
Oct 5 1252.50 1.20 11 10.9 58.00 (4.9%)
5% Yield On GOOGL Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Sep 28 1227.50 0.75 4 18.8 33.00 (2.8%)
Oct 5 1242.50 2.00 11 18.2 48.00 (4.0%)
10% Yield On GOOGL Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Sep 28 1220.00 1.45 4 36.3 25.50 (2.1%)
Oct 5 1230.00 3.60 11 32.7 35.50 (3.0%)

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