ZIP Dividend Type Payments

ZipRecruiter, Inc. Class A dividend

Although ZIP has no upcoming (meaning, Board-approved and announced) dividends, you can sell covered calls on ZipRecruiter, 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):

ZipRecruiter, Inc. Class A (ZIP)
Bid Ask Last Change Volume P/E Market Cap
9.00 9.55 9.11 -0.45 460K 478 1.0B

ZIP Dividend-Like Income Using Covered Calls

With ZIP at 9.11, 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% 0.27 0.1
5% 0.46 0.1
10% 0.91 0.2

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 ZIP Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Jan 17 10.00 0.25 64 0.4 0.45 (4.9%)
Jun 20 10.00 0.95 218 0.4 0.45 (4.9%)
5% Yield On ZIP Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Jan 17 10.00 0.25 64 0.4 0.45 (4.9%)
Jun 20 10.00 0.95 218 0.4 0.45 (4.9%)
10% Yield On ZIP Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Jan 17 10.00 0.25 64 0.4 0.45 (4.9%)
Jun 20 10.00 0.95 218 0.4 0.45 (4.9%)

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