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 Fri 4:16 PM ET):

Noodles & Co CL A (NDLS)
Bid Ask Last Change Volume P/E Market Cap
7.45 8.77 7.51 -0.05 207K - 0.3B

NDLS Dividend-Like Income Using Covered Calls

With NDLS at 7.51, 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% 0.23 0.1
5% 0.38 0.1
10% 0.75 0.2

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 NDLS Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
May 17 10.00 0.15 92 0.2 1.23 (16.4%)
Aug 16 10.00 0.35 183 0.2 1.23 (16.4%)
5% Yield On NDLS Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
May 17 10.00 0.15 92 0.2 1.23 (16.4%)
Aug 16 10.00 0.35 183 0.2 1.23 (16.4%)

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