Global Payments Inc. is an American multinational financial technology company that provides payment processing technology and software solutions to merchants, financial institutions, and consumers worldwide. It helps businesses accept credit, debit, digital and contactless payments and offers integrated commerce services across in-store, online, and mobile channels, supporting tens of billions of transactions annually across more than 175 countries. The company is headquartered in Atlanta, Georgia, is a Fortune 500® and S&P 500® member and employs roughly 27,000 people globally. In recent years it has pursued strategic acquisitions (notably recently completing its purchase of Worldpay) and divestitures to sharpen its focus as a pure-play commerce solutions provider with expanded scale and capabilities. Its technology portfolio includes point-of-sale systems, APIs, analytics and software that enable seamless payments and business operations across a wide range of industries.
As shown on the table at the bottom of this post, eight of the nine criteria of the Dividend Capture Strategy are met with this position. Even if the Global Payments stock price declines somewhat during the next 24 days until the options expiration date, if the stock closes above the $75.00 strike price, then a satisfactory annualized-return-on-investment of +35.9% will be achieved.
The average Target Price of the analysts covering Global Payments is +30.0% above today's purchase price. Global Payments is Buy rated by LSEG Stock Reports Plus and CFRA and it is top-rated as a 5 star stock by Morningstar. In addition, Global Payments was highly ranked in my Stock Rover "Free-Cash-Flow Growers" stock screener since it passed all criteria in that screener (see chart below):
As detailed below, two potential return-on-investment results are:
- +2.0% absolute return (equivalent to +56.8% annualized
return-on-investment for the next 13 days) if the stock is assigned early (on the last business day
prior to the March 9th, 2026 ex-dividend date); or
- +2.4% absolute return (equivalent to +35.9% annualized return-on-investment over the next 24 days) if the stock is assigned on the March 20th, 2026 options expiration date.
Global Payments Inc. (GPN) -- New Covered Calls Position
2/24/2026 Bought 400 Global Payments Inc. shares @ $78.63.
2/24/2026 Sold 4 GPN 3/20/2026 $75.00 Call options @ $5.11 per share. The Implied Volatility of these Calls was 37.2% when this buy/write transaction occurred, which as preferred is well above the current 19.6% for the S&P 500 Volatility Index (i.e. VIX).
3/9/2026 Upcoming quarterly ex-dividend of $.25 per share.
Two possible overall performance results (including commissions) for this Global Payments Inc. Covered Calls position are as follows:
Covered Calls Net Investment: $29,410.68
= ($78.63 - $5.11) * 400 shares + $2.68 commission
Net Profit Components:
(a) Options Income: +$2,046.68
= ($5.11 * 400 shares) - $2.68 commission
(b) Dividend Income (If Global Payments Call options exercised early on March 6th, 2026, the last trading day prior to the March 9th ex-div date): +$0.00; or
(b) Dividend Income (If GPN's stock is assigned at the March 20th, 2026 options expiration date): +$100.00
= ($.25 dividend per share x 400 shares)
(c) Capital Appreciation (If shares assigned at $75.00 strike price at the March 20th options expiration): -$1,452.00
+($75.00 - $78.63) * 400 shares
At least eight of the nine metrics used in the Covered Calls Advisor's Dividend Capture Strategy spreadsheet (see below) must be 'YES' prior to establishing a new Covered Calls position using the Covered Calls Advisor's Dividend Capture strategy. As shown below, eight of the nine criteria are achieved for this Global Payments Inc. Covered Calls position.
