EAT Dividend

BRINKER INTL dividend

Although EAT has a dividend of 0.38 with an ex-dividend date of Sep 6, you can sell covered calls on BRINKER INTL to create 12 extra dividend type payments per year to boost its yield. Let's look at some recent prices (last updated Wed 4:16 PM ET):

BRINKER INTL (EAT)
Bid Ask Last Change Volume P/E Market Cap
41.24 44.08 43.13 -0.03 881K 16 1.9B

EAT Dividend-Like Income Using Covered Calls

With EAT at 43.13, 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% 1.29 0.4
5% 2.16 0.6
10% 4.31 1.2

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 EAT Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Sep 21 50.00 0.15 38 0.4 5.92 (13.7%)
Oct 19 50.00 0.35 66 0.5 5.92 (13.7%)
5% Yield On EAT Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Sep 21 45.00 0.90 38 2.4 0.92 (2.1%)
Oct 19 45.00 1.45 66 2.2 0.92 (2.1%)
10% Yield On EAT Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Sep 21 45.00 0.90 38 2.4 0.92 (2.1%)
Oct 19 45.00 1.45 66 2.2 0.92 (2.1%)

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