GDDY Dividend Type Payments
Although GDDY has no upcoming (meaning, Board-approved and announced) dividends, you can sell covered calls on GoDaddy 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 Fri 4:16 PM ET):
| GoDaddy Inc. Class A (GDDY) |
|---|
| Bid |
Ask |
Last |
Change |
Volume |
P/E |
Market Cap |
| 167.00 |
170.00 |
167.86 |
-2.91 |
1.6M |
33 |
24B |
GDDY Dividend-Like Income Using Covered Calls
With GDDY at 167.86, 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% |
5.04 |
1.4 |
| 5% |
8.39 |
2.3 |
| 10% |
16.79 |
4.6 |
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 GDDY Using Covered Calls |
|---|
| Expiration |
Strike |
Call Bid |
Days |
Cents/Day |
Upside Potential |
| Aug 1 |
170.00 |
0.75 |
22 |
3.4 |
0.00 (0.0%) |
| Aug 8 |
170.00 |
4.20 |
29 |
14.5 |
0.00 (0.0%) |
| 5% Yield On GDDY Using Covered Calls |
|---|
| Expiration |
Strike |
Call Bid |
Days |
Cents/Day |
Upside Potential |
| Aug 1 |
170.00 |
0.75 |
22 |
3.4 |
0.00 (0.0%) |
| Aug 8 |
170.00 |
4.20 |
29 |
14.5 |
0.00 (0.0%) |
| 10% Yield On GDDY Using Covered Calls |
|---|
| Expiration |
Strike |
Call Bid |
Days |
Cents/Day |
Upside Potential |
| Aug 8 |
170.00 |
4.20 |
29 |
14.5 |
0.00 (0.0%) |
| Aug 15 |
170.00 |
6.10 |
36 |
16.9 |
0.00 (0.0%) |
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