GSHD Dividend Type Payments
Although GSHD has no upcoming (meaning, Board-approved and announced) dividends, you can sell covered calls on Goosehead Insurance, Inc. - Class 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):
| Goosehead Insurance, Inc. - Class A (GSHD) |
|---|
| Bid |
Ask |
Last |
Change |
Volume |
P/E |
Market Cap |
| 82.27 |
87.62 |
86.05 |
-1.12 |
259K |
77 |
3.3B |
GSHD Dividend-Like Income Using Covered Calls
With GSHD at 86.05, 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% |
2.58 |
0.7 |
| 5% |
4.30 |
1.2 |
| 10% |
8.61 |
2.4 |
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 GSHD Using Covered Calls |
|---|
| Expiration |
Strike |
Call Bid |
Days |
Cents/Day |
Upside Potential |
| Sep 19 |
89.09 |
2.15 |
43 |
5.0 |
1.47 (1.7%) |
| Dec 19 |
100.00 |
4.10 |
134 |
3.1 |
12.38 (14.4%) |
| 5% Yield On GSHD Using Covered Calls |
|---|
| Expiration |
Strike |
Call Bid |
Days |
Cents/Day |
Upside Potential |
| Sep 19 |
89.09 |
2.15 |
43 |
5.0 |
1.47 (1.7%) |
| Dec 19 |
100.00 |
4.10 |
134 |
3.1 |
12.38 (14.4%) |
| 10% Yield On GSHD Using Covered Calls |
|---|
| Expiration |
Strike |
Call Bid |
Days |
Cents/Day |
Upside Potential |
| Sep 19 |
89.09 |
2.15 |
43 |
5.0 |
1.47 (1.7%) |
| Dec 19 |
100.00 |
4.10 |
134 |
3.1 |
12.38 (14.4%) |
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