ZG Dividend Type Payments
Although ZG has no upcoming (meaning, Board-approved and announced) dividends, you can sell covered calls on Zillow Group, 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 Thu 11:25 AM ET):
| Zillow Group, Inc. - Class A (ZG) |
|---|
| Bid |
Ask |
Last |
Change |
Volume |
P/E |
Market Cap |
| 72.55 |
72.66 |
72.64 |
+0.42 |
171K |
- |
17B |
ZG Dividend-Like Income Using Covered Calls
With ZG at 72.64, 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% |
2.18 |
0.6 |
| 5% |
3.63 |
1.0 |
| 10% |
7.26 |
2.0 |
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 ZG Using Covered Calls |
|---|
| Expiration |
Strike |
Call Bid |
Days |
Cents/Day |
Upside Potential |
| Dec 20 |
75.00 |
2.65 |
37 |
7.2 |
2.34 (3.2%) |
| May 16 |
100.00 |
2.35 |
184 |
1.3 |
27.34 (37.6%) |
| 5% Yield On ZG Using Covered Calls |
|---|
| Expiration |
Strike |
Call Bid |
Days |
Cents/Day |
Upside Potential |
| Dec 20 |
75.00 |
2.65 |
37 |
7.2 |
2.34 (3.2%) |
| May 16 |
100.00 |
2.35 |
184 |
1.3 |
27.34 (37.6%) |
| 10% Yield On ZG Using Covered Calls |
|---|
| Expiration |
Strike |
Call Bid |
Days |
Cents/Day |
Upside Potential |
| Dec 20 |
75.00 |
2.65 |
37 |
7.2 |
2.34 (3.2%) |
| May 16 |
75.00 |
9.00 |
184 |
4.9 |
2.34 (3.2%) |
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