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 Tue 4:16 PM ET):
| Zillow Group, Inc. - Class A (ZG) |
|---|
| Bid |
Ask |
Last |
Change |
Volume |
P/E |
Market Cap |
| 73.80 |
76.48 |
74.72 |
+2.07 |
979K |
- |
18B |
ZG Dividend-Like Income Using Covered Calls
With ZG at 74.72, 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% |
2.24 |
0.6 |
| 5% |
3.74 |
1.0 |
| 10% |
7.47 |
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 |
| Aug 15 |
100.00 |
2.10 |
172 |
1.2 |
23.52 (31.5%) |
| May 16 |
100.00 |
0.60 |
81 |
0.7 |
23.52 (31.5%) |
| 5% Yield On ZG Using Covered Calls |
|---|
| Expiration |
Strike |
Call Bid |
Days |
Cents/Day |
Upside Potential |
| Aug 15 |
100.00 |
2.10 |
172 |
1.2 |
23.52 (31.5%) |
| May 16 |
80.00 |
2.75 |
81 |
3.4 |
3.52 (4.7%) |
| 10% Yield On ZG Using Covered Calls |
|---|
| Expiration |
Strike |
Call Bid |
Days |
Cents/Day |
Upside Potential |
| Aug 15 |
80.00 |
5.90 |
172 |
3.4 |
3.52 (4.7%) |
| May 16 |
80.00 |
2.75 |
81 |
3.4 |
3.52 (4.7%) |
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