DAVE Dividend Type Payments
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 Wed 4:16 PM ET):
Dave Inc. - Class A (DAVE) | ||||||
---|---|---|---|---|---|---|
Bid | Ask | Last | Change | Volume | P/E | Market Cap |
48.30 | 50.00 | 49.38 | +3.55 | 536K | - | 0.5B |
DAVE Dividend-Like Income Using Covered Calls
With DAVE at 49.38, 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% | 1.48 | 0.4 |
5% | 2.47 | 0.7 |
10% | 4.94 | 1.4 |
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 | |
Nov 15 | 50.00 | 2.50 | 31 | 8.1 | 0.00 (0.0%) | |
Oct 18 | 50.00 | 0.25 | 3 | 8.3 | 0.00 (0.0%) |
5% Yield On DAVE Using Covered Calls | ||||||
---|---|---|---|---|---|---|
Expiration | Strike | Call Bid | Days | Cents/Day | Upside Potential | |
Nov 15 | 50.00 | 2.50 | 31 | 8.1 | 0.00 (0.0%) | |
Oct 18 | 50.00 | 0.25 | 3 | 8.3 | 0.00 (0.0%) |
10% Yield On DAVE Using Covered Calls | ||||||
---|---|---|---|---|---|---|
Expiration | Strike | Call Bid | Days | Cents/Day | Upside Potential | |
Nov 15 | 50.00 | 2.50 | 31 | 8.1 | 0.00 (0.0%) | |
Oct 18 | 50.00 | 0.25 | 3 | 8.3 | 0.00 (0.0%) |
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Top 10 Open Interest For Oct 18 Expiration | Top 5 High Yield | |||||
---|---|---|---|---|---|---|
1. | NVDA dividend | 6. | QQQ dividend | 1. | CAPR dividend | |
2. | FXI dividend | 7. | EEM dividend | 2. | DJT dividend | |
3. | IWM dividend | 8. | SLV dividend | 3. | APLD dividend | |
4. | TSLA dividend | 9. | SMCI dividend | 4. | SNAP dividend | |
5. | SPY dividend | 10. | KWEB dividend | 5. | CPRI dividend |
Want more examples? DAT Dividend | DAX Dividend