GOOGL Dividend
Although GOOGL has a dividend of 0.20 with an ex-dividend date of Mar 10, you can sell covered calls on Alphabet 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):
| Alphabet Inc. - Class A (GOOGL) | ||||||
|---|---|---|---|---|---|---|
| Bid | Ask | Last | Change | Volume | P/E | Market Cap |
| 179.48 | 179.52 | 179.66 | -4.90 | 32.4M | - | 2,250B |
GOOGL Dividend-Like Income Using Covered Calls
With GOOGL at 179.66, 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% | 5.39 | 1.5 |
| 5% | 8.98 | 2.5 |
| 10% | 17.97 | 4.9 |
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 GOOGL Using Covered Calls | ||||||
|---|---|---|---|---|---|---|
| Expiration | Strike | Call Bid | Days | Cents/Day | Upside Potential | |
| Mar 7 | 180.00 | 3.80 | 15 | 25.3 | 0.48 (0.3%) | |
| Mar 14 | 180.00 | 4.65 | 22 | 21.1 | 0.48 (0.3%) | |
| 5% Yield On GOOGL Using Covered Calls | ||||||
|---|---|---|---|---|---|---|
| Expiration | Strike | Call Bid | Days | Cents/Day | Upside Potential | |
| Mar 7 | 180.00 | 3.80 | 15 | 25.3 | 0.48 (0.3%) | |
| Mar 14 | 180.00 | 4.65 | 22 | 21.1 | 0.48 (0.3%) | |
| 10% Yield On GOOGL Using Covered Calls | ||||||
|---|---|---|---|---|---|---|
| Expiration | Strike | Call Bid | Days | Cents/Day | Upside Potential | |
| Mar 7 | 180.00 | 3.80 | 15 | 25.3 | 0.48 (0.3%) | |
| Mar 14 | 180.00 | 4.65 | 22 | 21.1 | 0.48 (0.3%) | |
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| Top 10 Open Interest For Mar 21 Expiration | Top 5 High Yield | |||||
|---|---|---|---|---|---|---|
| 1. | NVDA dividend | 6. | KWEB dividend | 1. | LUNR dividend | |
| 2. | FXI dividend | 7. | INTC dividend | 2. | HIMS dividend | |
| 3. | SPY dividend | 8. | SLV dividend | 3. | RGTI dividend | |
| 4. | EEM dividend | 9. | QQQ dividend | 4. | SOUN dividend | |
| 5. | IWM dividend | 10. | HYG dividend | 5. | WOLF dividend | |
Want more examples? GOOG Dividend | GOOS Dividend
