Z Dividend Type Payments

Zillow Group, Inc dividend

Although Z has no upcoming (meaning, Board-approved and announced) dividends, you can sell covered calls on Zillow Group, Inc to create 12 extra dividend type payments per year to boost its yield. Let's look at some recent prices (last updated Wed 11:55 AM ET):

Zillow Group, Inc (Z)
Bid Ask Last Change Volume P/E Market Cap
37.14 37.16 37.15 +1.14 745K - 0.0B

Z Dividend-Like Income Using Covered Calls

With Z at 37.15, 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% 1.11 0.3
5% 1.86 0.5
10% 3.72 1.0

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 Z Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Dec 14 39.00 0.05 3 1.7 1.84 (5.0%)
Dec 21 40.00 0.25 10 2.5 2.84 (7.6%)
5% Yield On Z Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Dec 14 39.00 0.05 3 1.7 1.84 (5.0%)
Dec 21 40.00 0.25 10 2.5 2.84 (7.6%)
10% Yield On Z Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Dec 14 39.00 0.05 3 1.7 1.84 (5.0%)
Dec 21 40.00 0.25 10 2.5 2.84 (7.6%)

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Top 10 Open Interest For Dec 21 Expiration     Top 5 High Yield
1.SPY dividend 6.IWM dividend   1. dividend
2.EEM dividend 7.FXI dividend   2. dividend
3.SPX dividend 8.GE dividend   3. dividend
4.QQQ dividend 9.VXX dividend   4. dividend
5.EWZ dividend 10.BAC dividend   5. dividend

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