RMAX Dividend Type Payments
Although RMAX has no upcoming (meaning, Board-approved and announced) dividends, you can sell covered calls on RE/MAX Holdings, Inc. Class A 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):
| RE/MAX Holdings, Inc. Class A (RMAX) | ||||||
|---|---|---|---|---|---|---|
| Bid | Ask | Last | Change | Volume | P/E | Market Cap |
| 7.20 | 8.00 | 7.87 | +0.60 | 232K | 12 | 0.1B |
RMAX Dividend-Like Income Using Covered Calls
With RMAX at 7.87, 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% | 0.24 | 0.1 |
| 5% | 0.39 | 0.1 |
| 10% | 0.79 | 0.2 |
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 RMAX Using Covered Calls | ||||||
|---|---|---|---|---|---|---|
| Expiration | Strike | Call Bid | Days | Cents/Day | Upside Potential | |
| Mar 20 | 10.00 | 0.10 | 120 | 0.1 | 2.00 (25.4%) | |
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| Top 10 Open Interest For Dec 19 Expiration | Top 5 High Yield | |||||
|---|---|---|---|---|---|---|
| 1. | NVDA dividend | 6. | EEM dividend | 1. | RZLT dividend | |
| 2. | IWM dividend | 7. | SLV dividend | 2. | IMNM dividend | |
| 3. | SPY dividend | 8. | TLT dividend | 3. | VTYX dividend | |
| 4. | IBIT dividend | 9. | GLD dividend | 4. | JANX dividend | |
| 5. | QQQ dividend | 10. | NFLX dividend | 5. | CIFR dividend | |
Want more examples? RM Dividend | RMBS Dividend
