PLAY Dividend Type Payments

DAVE & BUSTERS ENTERTAINMENT dividend

Although PLAY has no upcoming (meaning, Board-approved and announced) dividends, you can sell covered calls on DAVE & BUSTERS ENTERTAINMENT 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 & BUSTERS ENTERTAINMENT (PLAY)
Bid Ask Last Change Volume P/E Market Cap
52.35 55.59 54.85 +1.31 1.3M 18 2.1B

PLAY Dividend-Like Income Using Covered Calls

With PLAY at 54.85, 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% 1.65 0.5
5% 2.74 0.8
10% 5.49 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
Aug 24 58.00 0.05 8 0.6 2.41 (4.4%)
Aug 31 57.50 0.30 15 2.0 1.91 (3.5%)
5% Yield On PLAY Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Aug 24 57.50 0.10 8 1.3 1.91 (3.5%)
Aug 31 57.50 0.30 15 2.0 1.91 (3.5%)
10% Yield On PLAY Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Aug 24 57.00 0.15 8 1.9 1.41 (2.6%)
Aug 31 57.50 0.30 15 2.0 1.91 (3.5%)

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