GRPN Dividend Type Payments

Groupon, Inc. dividend

Although GRPN has no upcoming (meaning, Board-approved and announced) dividends, you can sell covered calls on Groupon, Inc. to create 12 extra dividend type payments per year to boost its yield. Let's look at some recent prices (last updated Fri 10:50 AM ET):

Groupon, Inc. (GRPN)
Bid Ask Last Change Volume P/E Market Cap
11.65 11.67 11.67 +0.20 139K - 0.4B

GRPN Dividend-Like Income Using Covered Calls

With GRPN at 11.67, 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% 0.35 0.1
5% 0.58 0.2
10% 1.17 0.3

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 GRPN Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
May 3 12.00 0.35 8 4.4 0.33 (2.8%)
May 10 12.00 1.05 15 7.0 0.33 (2.8%)
5% Yield On GRPN Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
May 3 12.00 0.35 8 4.4 0.33 (2.8%)
May 10 12.00 1.05 15 7.0 0.33 (2.8%)
10% Yield On GRPN Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
May 3 12.00 0.35 8 4.4 0.33 (2.8%)
May 10 12.00 1.05 15 7.0 0.33 (2.8%)

Want to increase dividends with covered calls?  Sign Up For A Free Trial

 
 
Top 10 Open Interest For May 17 Expiration     Top 5 High Yield
1.IWM dividend 6.EEM dividend   1.WOLF dividend
2.HYG dividend 7.KWEB dividend   2.ENVX dividend
3.QQQ dividend 8.SLV dividend   3.FSLY dividend
4.SPY dividend 9.TSLA dividend   4.CGC dividend
5.FXI dividend 10.NVDA dividend   5.DJT dividend

Want more examples? GROW Dividend | GRWG Dividend