GPI Dividend Type Payments
Although GPI has no upcoming (meaning, Board-approved and announced) dividends, you can sell covered calls on Group 1 Automotive, Inc. to create 12 extra dividend type payments per year to boost its yield. Let's look at some recent prices (last updated Fri 10:45 AM ET):
| Group 1 Automotive, Inc. (GPI) | ||||||
|---|---|---|---|---|---|---|
| Bid | Ask | Last | Change | Volume | P/E | Market Cap |
| 406.51 | 411.04 | 408.00 | +2.67 | 8K | 11 | 11B |
GPI Dividend-Like Income Using Covered Calls
With GPI at 408.00, here's a table showing how big the annual "dividend" (i.e. 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% | 12.24 | 3.4 |
| 5% | 20.40 | 5.6 |
| 10% | 40.80 | 11.2 |
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 GPI Using Covered Calls | ||||||
|---|---|---|---|---|---|---|
| Expiration | Strike | Call Bid | Days | Cents/Day | Upside Potential | |
| Aug 15 | 410.00 | 32.00 | 106 | 29.2 | 0.00 (0.0%) | |
| May 16 | 410.00 | 9.50 | 15 | 56.4 | 0.00 (0.0%) | |
| 5% Yield On GPI Using Covered Calls | ||||||
|---|---|---|---|---|---|---|
| Expiration | Strike | Call Bid | Days | Cents/Day | Upside Potential | |
| Aug 15 | 410.00 | 32.00 | 106 | 29.2 | 0.00 (0.0%) | |
| May 16 | 410.00 | 9.50 | 15 | 56.4 | 0.00 (0.0%) | |
| 10% Yield On GPI Using Covered Calls | ||||||
|---|---|---|---|---|---|---|
| Expiration | Strike | Call Bid | Days | Cents/Day | Upside Potential | |
| Aug 15 | 410.00 | 32.00 | 106 | 29.2 | 0.00 (0.0%) | |
| May 16 | 410.00 | 9.50 | 15 | 56.4 | 0.00 (0.0%) | |
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| Top 10 Open Interest For May 16 Expiration | Top 5 High Yield | |||||
|---|---|---|---|---|---|---|
| 1. | NVDA dividend | 6. | IWM dividend | 1. | WOLF dividend | |
| 2. | SPY dividend | 7. | FXI dividend | 2. | QUBT dividend | |
| 3. | TLT dividend | 8. | GLD dividend | 3. | RGTI dividend | |
| 4. | SLV dividend | 9. | TSLA dividend | 4. | APP dividend | |
| 5. | QQQ dividend | 10. | INTC dividend | 5. | RIOT dividend | |
Want more examples? GPC Dividend | GPK Dividend
