LOPE Dividend Type Payments

GRAND CANYON EDUCATION dividend

Although LOPE has no upcoming (meaning, Board-approved and announced) dividends, you can sell covered calls on GRAND CANYON EDUCATION to create 12 extra dividend type payments per year to boost its yield. Let's look at some recent prices (last updated Tue 11:30 AM ET):

GRAND CANYON EDUCATION (LOPE)
Bid Ask Last Change Volume P/E Market Cap
116.64 116.83 116.81 +1.85 67K 24 5.5B

LOPE Dividend-Like Income Using Covered Calls

With LOPE at 116.81, here's a table showing how big the annual "dividend" (ie. 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% 3.50 1.0
5% 5.84 1.6
10% 11.68 3.2

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 LOPE Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Sep 21 120.00 1.45 39 3.7 3.17 (2.7%)
Dec 21 130.00 2.15 130 1.7 13.17 (11.3%)
5% Yield On LOPE Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Sep 21 120.00 1.45 39 3.7 3.17 (2.7%)
Dec 21 130.00 2.15 130 1.7 13.17 (11.3%)
10% Yield On LOPE Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Sep 21 120.00 1.45 39 3.7 3.17 (2.7%)
Dec 21 120.00 5.30 130 4.1 3.17 (2.7%)

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