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 Wed 4:16 PM ET):
| Dave & Buster's Entertainment, Inc. (PLAY) | ||||||
|---|---|---|---|---|---|---|
| Bid | Ask | Last | Change | Volume | P/E | Market Cap |
| 30.40 | 32.75 | 30.40 | -1.46 | 813K | 31 | 1.1B |
PLAY Dividend-Like Income Using Covered Calls
With PLAY at 30.40, 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% | 0.91 | 0.2 |
| 5% | 1.52 | 0.4 |
| 10% | 3.04 | 0.8 |
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 | 33.00 | 1.10 | 52 | 2.1 | 0.25 (0.8%) | |
| Oct 17 | 33.00 | 3.40 | 115 | 3.0 | 0.25 (0.8%) | |
| 5% Yield On PLAY Using Covered Calls | ||||||
|---|---|---|---|---|---|---|
| Expiration | Strike | Call Bid | Days | Cents/Day | Upside Potential | |
| Aug 15 | 33.00 | 1.10 | 52 | 2.1 | 0.25 (0.8%) | |
| Oct 17 | 33.00 | 3.40 | 115 | 3.0 | 0.25 (0.8%) | |
| 10% Yield On PLAY Using Covered Calls | ||||||
|---|---|---|---|---|---|---|
| Expiration | Strike | Call Bid | Days | Cents/Day | Upside Potential | |
| Aug 15 | 33.00 | 1.10 | 52 | 2.1 | 0.25 (0.8%) | |
| Oct 17 | 33.00 | 3.40 | 115 | 3.0 | 0.25 (0.8%) | |
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| Top 10 Open Interest For Jul 18 Expiration | Top 5 High Yield | |||||
|---|---|---|---|---|---|---|
| 1. | NVDA dividend | 6. | TSLA dividend | 1. | ALT dividend | |
| 2. | SLV dividend | 7. | IWM dividend | 2. | COGT dividend | |
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| 5. | TLT dividend | 10. | QQQ dividend | 5. | CAPR dividend | |
Want more examples? PLAB Dividend | PLCE Dividend
