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 Fri 4:16 PM ET):
| Goosehead Insurance, Inc. - Class A (GSHD) |
|---|
| Bid |
Ask |
Last |
Change |
Volume |
P/E |
Market Cap |
| 114.54 |
123.69 |
119.08 |
-0.11 |
160K |
170 |
4.4B |
GSHD Dividend-Like Income Using Covered Calls
With GSHD at 119.08, 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% |
3.57 |
1.0 |
| 5% |
5.95 |
1.6 |
| 10% |
11.91 |
3.3 |
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 |
| Dec 20 |
125.00 |
2.45 |
36 |
6.8 |
1.31 (1.1%) |
| Jan 17 |
125.00 |
3.80 |
64 |
5.9 |
1.31 (1.1%) |
| 5% Yield On GSHD Using Covered Calls |
|---|
| Expiration |
Strike |
Call Bid |
Days |
Cents/Day |
Upside Potential |
| Dec 20 |
125.00 |
2.45 |
36 |
6.8 |
1.31 (1.1%) |
| Jan 17 |
125.00 |
3.80 |
64 |
5.9 |
1.31 (1.1%) |
| 10% Yield On GSHD Using Covered Calls |
|---|
| Expiration |
Strike |
Call Bid |
Days |
Cents/Day |
Upside Potential |
| Dec 20 |
125.00 |
2.45 |
36 |
6.8 |
1.31 (1.1%) |
| Jan 17 |
125.00 |
3.80 |
64 |
5.9 |
1.31 (1.1%) |
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