GPI Dividend

Although GPI has a dividend of 0.50 with an ex-dividend date of Mar 3, you can sell covered calls on Group 1 Automotive, Inc. 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):

Group 1 Automotive, Inc. (GPI)
Bid	Ask	Last	Change	Volume	P/E	Market Cap
430.35	486.99	451.16	-17.26	151K	13	13B

GPI Dividend-Like Income Using Covered Calls

With GPI at 451.16, 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%	13.53	3.7
5%	22.56	6.2
10%	45.12	12.4

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 GPI Using Covered Calls
Expiration	Strike	Call Bid	Days	Cents/Day	Upside Potential
Aug 15	490.00	27.10	176	15.4	3.01 (0.7%)
Apr 17	490.00	7.40	56	13.2	3.01 (0.7%)

5% Yield On GPI Using Covered Calls
Expiration	Strike	Call Bid	Days	Cents/Day	Upside Potential
Aug 15	490.00	27.10	176	15.4	3.01 (0.7%)
Apr 17	490.00	7.40	56	13.2	3.01 (0.7%)

10% Yield On GPI Using Covered Calls
Expiration	Strike	Call Bid	Days	Cents/Day	Upside Potential
Aug 15	490.00	27.10	176	15.4	3.01 (0.7%)
Apr 17	490.00	7.40	56	13.2	3.01 (0.7%)

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Want more examples? GPC Dividend | GPK Dividend