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 Tue 4:16 PM ET):
| GoDaddy Inc. Class A (GDDY) |
|---|
| Bid |
Ask |
Last |
Change |
Volume |
P/E |
Market Cap |
| 143.51 |
145.73 |
144.14 |
-1.41 |
1.5M |
26 |
20B |
GDDY Dividend-Like Income Using Covered Calls
With GDDY at 144.14, 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% |
4.32 |
1.2 |
| 5% |
7.21 |
2.0 |
| 10% |
14.41 |
3.9 |
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 GDDY Using Covered Calls |
|---|
| Expiration |
Strike |
Call Bid |
Days |
Cents/Day |
Upside Potential |
| Oct 3 |
146.00 |
2.60 |
18 |
14.4 |
0.27 (0.2%) |
| Oct 10 |
150.00 |
1.85 |
25 |
7.4 |
4.27 (3.0%) |
| 5% Yield On GDDY Using Covered Calls |
|---|
| Expiration |
Strike |
Call Bid |
Days |
Cents/Day |
Upside Potential |
| Oct 3 |
146.00 |
2.60 |
18 |
14.4 |
0.27 (0.2%) |
| Oct 10 |
150.00 |
1.85 |
25 |
7.4 |
4.27 (3.0%) |
| 10% Yield On GDDY Using Covered Calls |
|---|
| Expiration |
Strike |
Call Bid |
Days |
Cents/Day |
Upside Potential |
| Oct 3 |
146.00 |
2.60 |
18 |
14.4 |
0.27 (0.2%) |
| Oct 10 |
150.00 |
1.85 |
25 |
7.4 |
4.27 (3.0%) |
Want to increase dividends with covered calls? Sign Up For A Free Trial
