RDFN Dividend Type Payments

Although RDFN has no upcoming (meaning, Board-approved and announced) dividends, you can sell covered calls on Redfin Corporation to create 12 extra dividend type payments per year to boost its yield. Let's look at some recent prices (last updated Thu 12:20 PM ET):

Redfin Corporation (RDFN)
Bid Ask Last Change Volume P/E Market Cap
9.54 9.55 9.54 -0.09 1.2M - 1.2B

RDFN Dividend-Like Income Using Covered Calls

With RDFN at 9.54, 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% 0.29 0.1
5% 0.48 0.1
10% 0.95 0.3

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 RDFN Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Dec 20 10.00 0.25 9 2.8 0.45 (4.7%)
Dec 27 10.00 0.40 16 2.5 0.45 (4.7%)
5% Yield On RDFN Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Dec 20 10.00 0.25 9 2.8 0.45 (4.7%)
Dec 27 10.00 0.40 16 2.5 0.45 (4.7%)
10% Yield On RDFN Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Dec 20 10.00 0.25 9 2.8 0.45 (4.7%)
Dec 27 10.00 0.40 16 2.5 0.45 (4.7%)

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Top 10 Open Interest For Dec 20 Expiration     Top 5 High Yield
1.NVDA dividend 6.IWM dividend   1.HUT dividend
2.SPY dividend 7.QQQ dividend   2.QUBT dividend
3.FXI dividend 8.KWEB dividend   3.TEM dividend
4.XLF dividend 9.TLT dividend   4.SERV dividend
5.EEM dividend 10.EWZ dividend   5.CLSK dividend

Want more examples? RCUS Dividend | RDI Dividend