RRGB Dividend Type Payments

RED Robin Gourmet Burger, Inc dividend

Although RRGB has no upcoming (meaning, Board-approved and announced) dividends, you can sell covered calls on RED Robin Gourmet Burger, Inc to create 12 extra dividend type payments per year to boost its yield. Let's look at some recent prices (last updated Wed 9:35 AM ET):

RED Robin Gourmet Burger, Inc (RRGB)
Bid Ask Last Change Volume P/E Market Cap
30.57 31.82 30.59 -0.33 3K - 0.0B

RRGB Dividend-Like Income Using Covered Calls

With RRGB at 30.59, 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% 0.92 0.3
5% 1.53 0.4
10% 3.06 0.8

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 RRGB Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Dec 21 35.00 0.05 10 0.5 3.18 (10.4%)
Jan 18 35.00 0.40 38 1.1 3.18 (10.4%)
5% Yield On RRGB Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Dec 21 35.00 0.05 10 0.5 3.18 (10.4%)
Jan 18 35.00 0.40 38 1.1 3.18 (10.4%)
10% Yield On RRGB Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Jan 18 35.00 0.40 38 1.1 3.18 (10.4%)
Mar 15 35.00 1.25 94 1.3 3.18 (10.4%)

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Top 10 Open Interest For Dec 21 Expiration     Top 5 High Yield
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Want more examples? RRD Dividend | RRR Dividend