PLAY Dividend Type Payments
Although PLAY has no upcoming (meaning, Board-approved and announced) dividends, you can sell covered calls on Dave & Buster's Entertainment, Inc. 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):
Dave & Buster's Entertainment, Inc. (PLAY) | ||||||
---|---|---|---|---|---|---|
Bid | Ask | Last | Change | Volume | P/E | Market Cap |
52.00 | 53.99 | 53.70 | +0.07 | 944K | 19 | 2.2B |
PLAY Dividend-Like Income Using Covered Calls
With PLAY at 53.70, here's a table showing how big the annual "dividend" (i.e. 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% | 1.61 | 0.4 |
5% | 2.69 | 0.7 |
10% | 5.37 | 1.5 |
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 PLAY Using Covered Calls | ||||||
---|---|---|---|---|---|---|
Expiration | Strike | Call Bid | Days | Cents/Day | Upside Potential | |
May 17 | 55.00 | 1.80 | 29 | 6.2 | 1.01 (1.9%) | |
Jun 21 | 55.00 | 3.70 | 64 | 5.8 | 1.01 (1.9%) |
5% Yield On PLAY Using Covered Calls | ||||||
---|---|---|---|---|---|---|
Expiration | Strike | Call Bid | Days | Cents/Day | Upside Potential | |
May 17 | 55.00 | 1.80 | 29 | 6.2 | 1.01 (1.9%) | |
Jun 21 | 55.00 | 3.70 | 64 | 5.8 | 1.01 (1.9%) |
10% Yield On PLAY Using Covered Calls | ||||||
---|---|---|---|---|---|---|
Expiration | Strike | Call Bid | Days | Cents/Day | Upside Potential | |
May 17 | 55.00 | 1.80 | 29 | 6.2 | 1.01 (1.9%) | |
Jun 21 | 55.00 | 3.70 | 64 | 5.8 | 1.01 (1.9%) |
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Top 10 Open Interest For May 17 Expiration | Top 5 High Yield | |||||
---|---|---|---|---|---|---|
1. | HYG dividend | 6. | KWEB dividend | 1. | CVNA dividend | |
2. | IWM dividend | 7. | EEM dividend | 2. | FSLY dividend | |
3. | FXI dividend | 8. | SLV dividend | 3. | CLSK dividend | |
4. | QQQ dividend | 9. | TSLA dividend | 4. | MARA dividend | |
5. | SPY dividend | 10. | EWZ dividend | 5. | EYPT dividend |
Want more examples? PLAB Dividend | PLCE Dividend