RAVE Dividend Type Payments
Although RAVE has no upcoming (meaning, Board-approved and announced) dividends, you can sell covered calls on Rave Restaurant Group, Inc. to create 12 extra dividend type payments per year to boost its yield. Let's look at some recent prices (last updated Fri 10:45 AM ET):
| Rave Restaurant Group, Inc. (RAVE) | ||||||
|---|---|---|---|---|---|---|
| Bid | Ask | Last | Change | Volume | P/E | Market Cap |
| 3.16 | 3.21 | 3.21 | 0.00 | 1K | 16 | 0.0B |
RAVE Dividend-Like Income Using Covered Calls
With RAVE at 3.21, 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% | 0.10 | 0.0 |
| 5% | 0.16 | 0.0 |
| 10% | 0.32 | 0.1 |
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 RAVE Using Covered Calls | ||||||
|---|---|---|---|---|---|---|
| Expiration | Strike | Call Bid | Days | Cents/Day | Upside Potential | |
| Jul 17 | 5.00 | 0.05 | 183 | 0.0 | 1.79 (55.8%) | |
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| Top 10 Open Interest For Feb 20 Expiration | Top 5 High Yield | |||||
|---|---|---|---|---|---|---|
| 1. | KWEB dividend | 6. | HYG dividend | 1. | IBRX dividend | |
| 2. | SLV dividend | 7. | AAPL dividend | 2. | RCAT dividend | |
| 3. | NVDA dividend | 8. | INTC dividend | 3. | ARWR dividend | |
| 4. | IBIT dividend | 9. | TLT dividend | 4. | WYFI dividend | |
| 5. | CORZ dividend | 10. | QQQ dividend | 5. | TLRY dividend | |
Want more examples? RARE Dividend | RAVI Dividend
