GDRX Dividend Type Payments
Although GDRX has no upcoming (meaning, Board-approved and announced) dividends, you can sell covered calls on GoodRx Holdings, 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 Mon 4:16 PM ET):
| GoodRx Holdings, Inc. - Class A (GDRX) |
|---|
| Bid |
Ask |
Last |
Change |
Volume |
P/E |
Market Cap |
| 2.25 |
2.30 |
2.28 |
+0.01 |
2.0M |
23 |
0.8B |
GDRX Dividend-Like Income Using Covered Calls
With GDRX at 2.28, 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% |
0.07 |
0.0 |
| 5% |
0.11 |
0.0 |
| 10% |
0.23 |
0.1 |
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 GDRX Using Covered Calls |
|---|
| Expiration |
Strike |
Call Bid |
Days |
Cents/Day |
Upside Potential |
| Apr 17 |
2.50 |
0.30 |
75 |
0.4 |
0.20 (8.8%) |
| Jul 17 |
2.50 |
0.45 |
166 |
0.3 |
0.20 (8.8%) |
| 5% Yield On GDRX Using Covered Calls |
|---|
| Expiration |
Strike |
Call Bid |
Days |
Cents/Day |
Upside Potential |
| Apr 17 |
2.50 |
0.30 |
75 |
0.4 |
0.20 (8.8%) |
| Jul 17 |
2.50 |
0.45 |
166 |
0.3 |
0.20 (8.8%) |
| 10% Yield On GDRX Using Covered Calls |
|---|
| Expiration |
Strike |
Call Bid |
Days |
Cents/Day |
Upside Potential |
| Apr 17 |
2.50 |
0.30 |
75 |
0.4 |
0.20 (8.8%) |
| Jul 17 |
2.50 |
0.45 |
166 |
0.3 |
0.20 (8.8%) |
Want to increase dividends with covered calls? Sign Up For A Free Trial
