RRR Dividend Type Payments

Although RRR has no upcoming (meaning, Board-approved and announced) dividends, you can sell covered calls on Red Rock Resorts, 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 Tue 4:16 PM ET):

Red Rock Resorts, Inc. - Class A (RRR)
Bid	Ask	Last	Change	Volume	P/E	Market Cap
56.00	61.55	58.93	+0.57	265K	20	6.1B

RRR Dividend-Like Income Using Covered Calls

With RRR at 58.93, 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%	1.77	0.5
5%	2.95	0.8
10%	5.89	1.6

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 RRR Using Covered Calls
Expiration	Strike	Call Bid	Days	Cents/Day	Upside Potential
May 17	65.00	0.35	25	1.4	3.45 (5.9%)
Jun 21	65.00	0.70	60	1.2	3.45 (5.9%)

5% Yield On RRR Using Covered Calls
Expiration	Strike	Call Bid	Days	Cents/Day	Upside Potential
May 17	65.00	0.35	25	1.4	3.45 (5.9%)
Jun 21	65.00	0.70	60	1.2	3.45 (5.9%)

10% Yield On RRR Using Covered Calls
Expiration	Strike	Call Bid	Days	Cents/Day	Upside Potential
Jul 19	64.00	1.65	88	1.9	2.45 (4.2%)
Oct 18	64.00	3.50	179	2.0	2.45 (4.2%)

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Want more examples? RRGB Dividend | RS Dividend