PLAY Dividend Type Payments

Dave & Busters Entertainment, Inc dividend

Although PLAY has no upcoming (meaning, Board-approved and announced) dividends, you can sell covered calls on Dave & Busters Entertainment, Inc 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):

Dave & Busters Entertainment, Inc (PLAY)
Bid Ask Last Change Volume P/E Market Cap
47.40 47.70 51.03 -1.46 1.7M - 0.0B

PLAY Dividend-Like Income Using Covered Calls

With PLAY at 51.03, 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% 1.53 0.4
5% 2.55 0.7
10% 5.10 1.4

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 PLAY Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Dec 14 61.00 0.05 4 1.3 13.30 (26.1%)
Dec 21 62.00 0.05 11 0.5 14.30 (28.0%)
5% Yield On PLAY Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Dec 14 61.00 0.05 4 1.3 13.30 (26.1%)
Dec 21 60.00 0.20 11 1.8 12.30 (24.1%)
10% Yield On PLAY Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Dec 14 60.00 0.10 4 2.5 12.30 (24.1%)
Dec 21 60.00 0.20 11 1.8 12.30 (24.1%)

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Top 10 Open Interest For Dec 21 Expiration     Top 5 High Yield
1.DUST dividend 6.NSSC dividend   1. dividend
2.NOVT dividend 7.MOD dividend   2. dividend
3.MMS dividend 8.VV dividend   3. dividend
4.VSI dividend 9.EC dividend   4. dividend
5.DXJS dividend 10.NTWK dividend   5. dividend

Want more examples? PLAB Dividend | PLCE Dividend