ELF Dividend Type Payments

Although ELF has no upcoming (meaning, Board-approved and announced) dividends, you can sell covered calls on ELF BEAUTY INC to create 12 extra dividend type payments per year to boost its yield. Let's look at some recent prices (last updated Tue 3:00 PM ET):

ELF BEAUTY INC (ELF)
Bid Ask Last Change Volume P/E Market Cap
11.21 11.22 11.22 +0.44 815K 17 0.5B

ELF Dividend-Like Income Using Covered Calls

With ELF at 11.22, 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% 0.34 0.1
5% 0.56 0.2
10% 1.12 0.3

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 ELF Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Sep 21 12.50 0.30 39 0.8 1.28 (11.4%)
Nov 16 15.00 0.15 95 0.2 3.78 (33.7%)
5% Yield On ELF Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Sep 21 12.50 0.30 39 0.8 1.28 (11.4%)
Nov 16 15.00 0.15 95 0.2 3.78 (33.7%)
10% Yield On ELF Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Sep 21 12.50 0.30 39 0.8 1.28 (11.4%)
Nov 16 12.50 0.60 95 0.6 1.28 (11.4%)

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Top 10 Open Interest For Aug 17 Expiration     Top 5 High Yield
1.SPY dividend 6.BAC dividend   1.M dividend
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5.XLF dividend 10.GLD dividend   5.CGC dividend

Want more examples? ELD Dividend | ELGX Dividend