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 Thu 4:16 PM ET):
Red Robin Gourmet Burgers, Inc. (RRGB) | ||||||
---|---|---|---|---|---|---|
Bid | Ask | Last | Change | Volume | P/E | Market Cap |
7.47 | 7.79 | 7.66 | +0.11 | 408K | - | 0.1B |
RRGB Dividend-Like Income Using Covered Calls
With RRGB at 7.66, 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% | 0.23 | 0.1 |
5% | 0.38 | 0.1 |
10% | 0.77 | 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 | |
May 17 | 10.00 | 0.05 | 51 | 0.1 | 2.21 (28.9%) | |
Jun 21 | 10.00 | 0.15 | 86 | 0.2 | 2.21 (28.9%) |
5% Yield On RRGB Using Covered Calls | ||||||
---|---|---|---|---|---|---|
Expiration | Strike | Call Bid | Days | Cents/Day | Upside Potential | |
Jun 21 | 10.00 | 0.15 | 86 | 0.2 | 2.21 (28.9%) | |
Sep 20 | 10.00 | 0.60 | 177 | 0.3 | 2.21 (28.9%) |
10% Yield On RRGB Using Covered Calls | ||||||
---|---|---|---|---|---|---|
Expiration | Strike | Call Bid | Days | Cents/Day | Upside Potential | |
Sep 20 | 10.00 | 0.60 | 177 | 0.3 | 2.21 (28.9%) |
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Top 10 Open Interest For Apr 19 Expiration | Top 5 High Yield | |||||
---|---|---|---|---|---|---|
1. | IWM dividend | 6. | TLT dividend | 1. | MRNS dividend | |
2. | SPY dividend | 7. | HYG dividend | 2. | LUNR dividend | |
3. | QQQ dividend | 8. | AAPL dividend | 3. | SOUN dividend | |
4. | FXI dividend | 9. | EEM dividend | 4. | CLSK dividend | |
5. | SLV dividend | 10. | TSLA dividend | 5. | CIFR dividend |
Want more examples? RRC Dividend | RRR Dividend