DAVE Dividend Type Payments

Dave Inc. - Class A dividend

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

Dave Inc. - Class A (DAVE)
Bid Ask Last Change Volume P/E Market Cap
212.00 215.00 211.72 -3.79 475K - 2.6B

DAVE Dividend-Like Income Using Covered Calls

With DAVE at 211.72, 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% 6.35 1.7
5% 10.59 2.9
10% 21.17 5.8

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 DAVE Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Jan 16 220.00 0.10 4 2.5 5.00 (2.4%)
Oct 16 220.00 54.00 277 19.5 5.00 (2.4%)
5% Yield On DAVE Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Jan 16 230.00 0.80 4 20.0 15.00 (7.1%)
Oct 16 220.00 54.00 277 19.5 5.00 (2.4%)
10% Yield On DAVE Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Jan 16 230.00 0.80 4 20.0 15.00 (7.1%)
Oct 16 220.00 54.00 277 19.5 5.00 (2.4%)

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