DLTH Dividend Type Payments

Although DLTH has no upcoming (meaning, Board-approved and announced) dividends, you can sell covered calls on DULUTH HOLDINGS INC CL B COMMON to create 12 extra dividend type payments per year to boost its yield. Let's look at some recent prices (last updated Mon 4:16 PM ET):

DULUTH HOLDINGS INC CL B COMMON (DLTH)
Bid Ask Last Change Volume P/E Market Cap
29.17 30.00 29.13 +0.80 233K 41 0.9B

DLTH Dividend-Like Income Using Covered Calls

With DLTH at 29.13, 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% 0.87 0.2
5% 1.46 0.4
10% 2.91 0.8

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 DLTH Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Sep 21 35.00 0.20 33 0.6 5.00 (17.2%)
Oct 19 35.00 0.40 61 0.7 5.00 (17.2%)
5% Yield On DLTH Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Sep 21 35.00 0.20 33 0.6 5.00 (17.2%)
Oct 19 35.00 0.40 61 0.7 5.00 (17.2%)
10% Yield On DLTH Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Sep 21 30.00 1.25 33 3.8 0.00 (0.0%)
Oct 19 30.00 1.55 61 2.5 0.00 (0.0%)

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