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 Thu 4:16 PM ET):
Zillow Group, Inc. - Class A (ZG) |
Bid |
Ask |
Last |
Change |
Volume |
P/E |
Market Cap |
42.26 |
43.04 |
42.41 |
-0.47 |
521K |
- |
10B |
ZG Dividend-Like Income Using Covered Calls
With ZG at 42.41, 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% |
1.27 |
0.3 |
5% |
2.12 |
0.6 |
10% |
4.24 |
1.2 |
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 ZG Using Covered Calls |
Expiration |
Strike |
Call Bid |
Days |
Cents/Day |
Upside Potential |
May 17 |
45.00 |
1.55 |
23 |
6.7 |
1.96 (4.6%) |
Jun 21 |
45.00 |
2.40 |
58 |
4.1 |
1.96 (4.6%) |
5% Yield On ZG Using Covered Calls |
Expiration |
Strike |
Call Bid |
Days |
Cents/Day |
Upside Potential |
May 17 |
45.00 |
1.55 |
23 |
6.7 |
1.96 (4.6%) |
Jun 21 |
45.00 |
2.40 |
58 |
4.1 |
1.96 (4.6%) |
10% Yield On ZG Using Covered Calls |
Expiration |
Strike |
Call Bid |
Days |
Cents/Day |
Upside Potential |
May 17 |
45.00 |
1.55 |
23 |
6.7 |
1.96 (4.6%) |
Jun 21 |
45.00 |
2.40 |
58 |
4.1 |
1.96 (4.6%) |
Want to increase dividends with covered calls? Sign Up For A Free Trial