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 |
| 71.00 |
77.75 |
71.57 |
-0.53 |
206K |
63 |
2.7B |
GSHD Dividend-Like Income Using Covered Calls
With GSHD at 71.57, 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% |
2.15 |
0.6 |
| 5% |
3.58 |
1.0 |
| 10% |
7.16 |
2.0 |
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 GSHD Using Covered Calls |
|---|
| Expiration |
Strike |
Call Bid |
Days |
Cents/Day |
Upside Potential |
| Jun 18 |
80.00 |
5.10 |
154 |
3.3 |
2.25 (3.1%) |
| Sep 18 |
100.00 |
1.85 |
246 |
0.8 |
22.25 (31.1%) |
| 5% Yield On GSHD Using Covered Calls |
|---|
| Expiration |
Strike |
Call Bid |
Days |
Cents/Day |
Upside Potential |
| Jun 18 |
80.00 |
5.10 |
154 |
3.3 |
2.25 (3.1%) |
| Sep 18 |
80.00 |
7.20 |
246 |
2.9 |
2.25 (3.1%) |
| 10% Yield On GSHD Using Covered Calls |
|---|
| Expiration |
Strike |
Call Bid |
Days |
Cents/Day |
Upside Potential |
| Jun 18 |
80.00 |
5.10 |
154 |
3.3 |
2.25 (3.1%) |
| Sep 18 |
80.00 |
7.20 |
246 |
2.9 |
2.25 (3.1%) |
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