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 Tue 4:16 PM ET):
| Goosehead Insurance, Inc. - Class A (GSHD) |
|---|
| Bid |
Ask |
Last |
Change |
Volume |
P/E |
Market Cap |
| 64.85 |
78.24 |
75.97 |
+0.41 |
466K |
66 |
2.8B |
GSHD Dividend-Like Income Using Covered Calls
With GSHD at 75.97, 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% |
2.28 |
0.6 |
| 5% |
3.80 |
1.0 |
| 10% |
7.60 |
2.1 |
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 |
| Dec 19 |
80.00 |
0.40 |
18 |
2.2 |
1.76 (2.3%) |
| Jan 16 |
80.00 |
0.80 |
46 |
1.7 |
1.76 (2.3%) |
| 5% Yield On GSHD Using Covered Calls |
|---|
| Expiration |
Strike |
Call Bid |
Days |
Cents/Day |
Upside Potential |
| Dec 19 |
80.00 |
0.40 |
18 |
2.2 |
1.76 (2.3%) |
| Jan 16 |
80.00 |
0.80 |
46 |
1.7 |
1.76 (2.3%) |
| 10% Yield On GSHD Using Covered Calls |
|---|
| Expiration |
Strike |
Call Bid |
Days |
Cents/Day |
Upside Potential |
| Dec 19 |
80.00 |
0.40 |
18 |
2.2 |
1.76 (2.3%) |
| Mar 20 |
80.00 |
7.00 |
109 |
6.4 |
1.76 (2.3%) |
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