ZG Dividend Type Payments
Although ZG has no upcoming (meaning, Board-approved and announced) dividends, you can sell covered calls on Zillow Group, 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):
| Zillow Group, Inc. - Class A (ZG) |
|---|
| Bid |
Ask |
Last |
Change |
Volume |
P/E |
Market Cap |
| 66.58 |
68.83 |
68.17 |
+0.21 |
819K |
- |
16B |
ZG Dividend-Like Income Using Covered Calls
With ZG at 68.17, 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% |
2.05 |
0.6 |
| 5% |
3.41 |
0.9 |
| 10% |
6.82 |
1.9 |
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 ZG Using Covered Calls |
|---|
| Expiration |
Strike |
Call Bid |
Days |
Cents/Day |
Upside Potential |
| May 15 |
70.00 |
5.50 |
144 |
3.8 |
1.17 (1.7%) |
| Jan 16 |
70.00 |
1.40 |
25 |
5.6 |
1.17 (1.7%) |
| 5% Yield On ZG Using Covered Calls |
|---|
| Expiration |
Strike |
Call Bid |
Days |
Cents/Day |
Upside Potential |
| May 15 |
70.00 |
5.50 |
144 |
3.8 |
1.17 (1.7%) |
| Jan 16 |
70.00 |
1.40 |
25 |
5.6 |
1.17 (1.7%) |
| 10% Yield On ZG Using Covered Calls |
|---|
| Expiration |
Strike |
Call Bid |
Days |
Cents/Day |
Upside Potential |
| May 15 |
70.00 |
5.50 |
144 |
3.8 |
1.17 (1.7%) |
| Jan 16 |
70.00 |
1.40 |
25 |
5.6 |
1.17 (1.7%) |
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