RICK Dividend Type Payments

Although RICK has no upcoming (meaning, Board-approved and announced) dividends, you can sell covered calls on RCI Hospitality Holdings, Inc. to create 12 extra dividend type payments per year to boost its yield. Let's look at some recent prices (last updated Tue 4:16 PM ET):

RCI Hospitality Holdings, Inc. (RICK)
Bid	Ask	Last	Change	Volume	P/E	Market Cap
35.00	39.82	39.68	+0.34	41K	47	0.3B

RICK Dividend-Like Income Using Covered Calls

With RICK at 39.68, 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%	1.19	0.3
5%	1.98	0.5
10%	3.97	1.1

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 RICK Using Covered Calls
Expiration	Strike	Call Bid	Days	Cents/Day	Upside Potential
Aug 15	40.00	0.60	53	1.1	0.18 (0.5%)
Jul 18	40.00	1.05	25	4.2	0.18 (0.5%)

5% Yield On RICK Using Covered Calls
Expiration	Strike	Call Bid	Days	Cents/Day	Upside Potential
Aug 15	40.00	0.60	53	1.1	0.18 (0.5%)
Jul 18	40.00	1.05	25	4.2	0.18 (0.5%)

10% Yield On RICK Using Covered Calls
Expiration	Strike	Call Bid	Days	Cents/Day	Upside Potential
Aug 15	40.00	0.60	53	1.1	0.18 (0.5%)
Jul 18	40.00	1.05	25	4.2	0.18 (0.5%)

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Want more examples? RHP Dividend | RIG Dividend