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
18.66	19.69	19.29	+0.57	723K	13	0.6B

PLAY Dividend-Like Income Using Covered Calls

With PLAY at 19.29, 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%	0.58	0.2
5%	0.96	0.3
10%	1.93	0.5

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
Aug 15	20.00	2.90	106	2.7	0.31 (1.6%)
May 16	20.00	0.70	15	4.7	0.31 (1.6%)

5% Yield On PLAY Using Covered Calls
Expiration	Strike	Call Bid	Days	Cents/Day	Upside Potential
Aug 15	20.00	2.90	106	2.7	0.31 (1.6%)
May 16	20.00	0.70	15	4.7	0.31 (1.6%)

10% Yield On PLAY Using Covered Calls
Expiration	Strike	Call Bid	Days	Cents/Day	Upside Potential
Aug 15	20.00	2.90	106	2.7	0.31 (1.6%)
May 16	20.00	0.70	15	4.7	0.31 (1.6%)

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Want more examples? PLAB Dividend | PLCE Dividend