NDLS Dividend Type Payments

NOODLES & CO CL A dividend

Although NDLS has no upcoming (meaning, Board-approved and announced) dividends, you can sell covered calls on NOODLES & CO CL 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):

NOODLES & CO CL A (NDLS)
Bid Ask Last Change Volume P/E Market Cap
12.95 13.40 13.23 +1.80 1.8M - 0.5B

NDLS Dividend-Like Income Using Covered Calls

With NDLS at 13.23, 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% 0.40 0.1
5% 0.66 0.2
10% 1.32 0.4

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 NDLS Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Nov 16 17.50 0.05 32 0.2 4.10 (31.0%)
Feb 15 17.50 0.50 123 0.4 4.10 (31.0%)
5% Yield On NDLS Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Nov 16 15.00 0.35 32 1.1 1.60 (12.1%)
Feb 15 17.50 0.50 123 0.4 4.10 (31.0%)
10% Yield On NDLS Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Nov 16 15.00 0.35 32 1.1 1.60 (12.1%)
Feb 15 17.50 0.50 123 0.4 4.10 (31.0%)

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