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 Mon 2:05 PM ET):
Goosehead Insurance, Inc. - Class A (GSHD) |
Bid |
Ask |
Last |
Change |
Volume |
P/E |
Market Cap |
57.55 |
57.73 |
57.67 |
+2.17 |
285K |
101 |
2.1B |
GSHD Dividend-Like Income Using Covered Calls
With GSHD at 57.67, 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% |
1.73 |
0.5 |
5% |
2.88 |
0.8 |
10% |
5.77 |
1.6 |
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 |
May 17 |
60.00 |
1.30 |
19 |
6.8 |
2.27 (3.9%) |
Sep 20 |
60.00 |
6.00 |
145 |
4.1 |
2.27 (3.9%) |
5% Yield On GSHD Using Covered Calls |
Expiration |
Strike |
Call Bid |
Days |
Cents/Day |
Upside Potential |
May 17 |
60.00 |
1.30 |
19 |
6.8 |
2.27 (3.9%) |
Sep 20 |
60.00 |
6.00 |
145 |
4.1 |
2.27 (3.9%) |
10% Yield On GSHD Using Covered Calls |
Expiration |
Strike |
Call Bid |
Days |
Cents/Day |
Upside Potential |
May 17 |
60.00 |
1.30 |
19 |
6.8 |
2.27 (3.9%) |
Sep 20 |
60.00 |
6.00 |
145 |
4.1 |
2.27 (3.9%) |
Want to increase dividends with covered calls? Sign Up For A Free Trial