GDYN Dividend Type Payments
Although GDYN has no upcoming (meaning, Board-approved and announced) dividends, you can sell covered calls on Grid Dynamics 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 Fri 4:16 PM ET):
| Grid Dynamics Holdings, Inc. - Class A (GDYN) |
|---|
| Bid |
Ask |
Last |
Change |
Volume |
P/E |
Market Cap |
| 19.85 |
21.22 |
20.50 |
+0.09 |
1.1M |
680 |
3.1B |
GDYN Dividend-Like Income Using Covered Calls
With GDYN at 20.50, 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% |
0.62 |
0.2 |
| 5% |
1.03 |
0.3 |
| 10% |
2.05 |
0.6 |
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 GDYN Using Covered Calls |
|---|
| Expiration |
Strike |
Call Bid |
Days |
Cents/Day |
Upside Potential |
| Jan 17 |
22.50 |
0.15 |
29 |
0.5 |
1.28 (6.2%) |
| Jun 20 |
22.50 |
1.90 |
183 |
1.0 |
1.28 (6.2%) |
| 5% Yield On GDYN Using Covered Calls |
|---|
| Expiration |
Strike |
Call Bid |
Days |
Cents/Day |
Upside Potential |
| Jan 17 |
22.50 |
0.15 |
29 |
0.5 |
1.28 (6.2%) |
| Jun 20 |
22.50 |
1.90 |
183 |
1.0 |
1.28 (6.2%) |
| 10% Yield On GDYN Using Covered Calls |
|---|
| Expiration |
Strike |
Call Bid |
Days |
Cents/Day |
Upside Potential |
| Jun 20 |
22.50 |
1.90 |
183 |
1.0 |
1.28 (6.2%) |
| Feb 21 |
22.50 |
0.80 |
64 |
1.3 |
1.28 (6.2%) |
Want to increase dividends with covered calls? Sign Up For A Free Trial
