DAVE Dividend Type Payments

Dave Inc. - Class A dividend

Although DAVE has no upcoming (meaning, Board-approved and announced) dividends, you can sell covered calls on Dave 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 Mon 4:16 PM ET):

Dave Inc. - Class A (DAVE)
Bid Ask Last Change Volume P/E Market Cap
199.00 206.50 203.79 +9.11 806K - 2.4B

DAVE Dividend-Like Income Using Covered Calls

With DAVE at 203.79, 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% 6.11 1.7
5% 10.19 2.8
10% 20.38 5.6

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 DAVE Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Dec 19 210.00 13.30 26 51.2 3.50 (1.7%)
Jan 16 210.00 20.70 54 38.3 3.50 (1.7%)
5% Yield On DAVE Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Dec 19 210.00 13.30 26 51.2 3.50 (1.7%)
Jan 16 210.00 20.70 54 38.3 3.50 (1.7%)
10% Yield On DAVE Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Dec 19 210.00 13.30 26 51.2 3.50 (1.7%)
Jan 16 210.00 20.70 54 38.3 3.50 (1.7%)

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