CBRL Dividend

CRACKER BARREL OLD dividend

Although CBRL has a dividend of 1.25 with an ex-dividend date of Oct 18, you can sell covered calls on CRACKER BARREL OLD to create 12 extra dividend type payments per year to boost its yield. Let's look at some recent prices (last updated Wed 12:00 PM ET):

CRACKER BARREL OLD (CBRL)
Bid Ask Last Change Volume P/E Market Cap
159.03 159.37 159.23 +1.95 155K 15 3.8B

CBRL Dividend-Like Income Using Covered Calls

With CBRL at 159.23, here's a table showing how big the annual "dividend" (ie. 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% 4.78 1.3
5% 7.96 2.2
10% 15.92 4.4

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 CBRL Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Oct 19 160.00 0.20 3 6.7 0.63 (0.4%)
Nov 16 165.00 0.75 31 2.4 5.63 (3.5%)
5% Yield On CBRL Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Oct 19 160.00 0.20 3 6.7 0.63 (0.4%)
Nov 16 165.00 0.75 31 2.4 5.63 (3.5%)
10% Yield On CBRL Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Oct 19 160.00 0.20 3 6.7 0.63 (0.4%)
Nov 16 160.00 2.20 31 7.1 0.63 (0.4%)

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Want more examples? CBRE Dividend | CBS Dividend