GSHD Dividend Type Payments
Although GSHD has no upcoming (meaning, Board-approved and announced) dividends, you can sell covered calls on Goosehead Insurance, 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 Wed 4:16 PM ET):
| Goosehead Insurance, Inc. - Class A (GSHD) |
|---|
| Bid |
Ask |
Last |
Change |
Volume |
P/E |
Market Cap |
| 103.75 |
112.88 |
107.89 |
-6.53 |
255K |
164 |
4.2B |
GSHD Dividend-Like Income Using Covered Calls
With GSHD at 107.89, 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% |
3.24 |
0.9 |
| 5% |
5.39 |
1.5 |
| 10% |
10.79 |
3.0 |
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 GSHD Using Covered Calls |
|---|
| Expiration |
Strike |
Call Bid |
Days |
Cents/Day |
Upside Potential |
| Jan 17 |
115.00 |
1.40 |
31 |
4.5 |
2.12 (2.0%) |
| Jun 20 |
115.00 |
12.10 |
185 |
6.5 |
2.12 (2.0%) |
| 5% Yield On GSHD Using Covered Calls |
|---|
| Expiration |
Strike |
Call Bid |
Days |
Cents/Day |
Upside Potential |
| Jan 17 |
115.00 |
1.40 |
31 |
4.5 |
2.12 (2.0%) |
| Jun 20 |
115.00 |
12.10 |
185 |
6.5 |
2.12 (2.0%) |
| 10% Yield On GSHD Using Covered Calls |
|---|
| Expiration |
Strike |
Call Bid |
Days |
Cents/Day |
Upside Potential |
| Jan 17 |
115.00 |
1.40 |
31 |
4.5 |
2.12 (2.0%) |
| Jun 20 |
115.00 |
12.10 |
185 |
6.5 |
2.12 (2.0%) |
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