RRGB Dividend Type Payments

Although RRGB has no upcoming (meaning, Board-approved and announced) dividends, you can sell covered calls on Red Robin Gourmet Burgers, Inc. to create 12 extra dividend type payments per year to boost its yield. Let's look at some recent prices (last updated Wed 3:20 PM ET):

Red Robin Gourmet Burgers, Inc. (RRGB)
Bid	Ask	Last	Change	Volume	P/E	Market Cap
5.50	5.52	5.51	+0.06	274K	-	0.1B

RRGB Dividend-Like Income Using Covered Calls

With RRGB at 5.51, 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%	0.17	0.0
5%	0.28	0.1
10%	0.55	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 RRGB Using Covered Calls
Expiration	Strike	Call Bid	Days	Cents/Day	Upside Potential
Jul 18	7.50	0.05	24	0.2	1.98 (35.9%)
Sep 19	7.50	0.35	87	0.4	1.98 (35.9%)

5% Yield On RRGB Using Covered Calls
Expiration	Strike	Call Bid	Days	Cents/Day	Upside Potential
Jul 18	7.50	0.05	24	0.2	1.98 (35.9%)
Sep 19	7.50	0.35	87	0.4	1.98 (35.9%)

10% Yield On RRGB Using Covered Calls
Expiration	Strike	Call Bid	Days	Cents/Day	Upside Potential
Jul 18	7.50	0.05	24	0.2	1.98 (35.9%)
Sep 19	7.50	0.35	87	0.4	1.98 (35.9%)

Want to increase dividends with covered calls? Sign Up For A Free Trial

Top 10 Open Interest For Jul 18 Expiration				Top 5 High Yield
1.	NVDA dividend	6.	TSLA dividend	1.	ALT dividend
2.	SLV dividend	7.	IWM dividend	2.	COGT dividend
3.	SPY dividend	8.	AAPL dividend	3.	CELC dividend
4.	GLD dividend	9.	FXI dividend	4.	QUBT dividend
5.	TLT dividend	10.	QQQ dividend	5.	CAPR dividend

Want more examples? RRC Dividend | RRR Dividend