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 Thu 4:16 PM ET):

Dave Inc. - Class A (DAVE)
Bid	Ask	Last	Change	Volume	P/E	Market Cap
81.77	85.77	84.27	+2.10	260K	-	1.0B

DAVE Dividend-Like Income Using Covered Calls

With DAVE at 84.27, 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%	2.53	0.7
5%	4.21	1.2
10%	8.43	2.3

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
May 16	100.00	4.00	30	13.3	14.23 (16.9%)
Oct 17	100.00	14.00	184	7.6	14.23 (16.9%)

5% Yield On DAVE Using Covered Calls
Expiration	Strike	Call Bid	Days	Cents/Day	Upside Potential
May 16	100.00	4.00	30	13.3	14.23 (16.9%)
Oct 17	100.00	14.00	184	7.6	14.23 (16.9%)

10% Yield On DAVE Using Covered Calls
Expiration	Strike	Call Bid	Days	Cents/Day	Upside Potential
May 16	100.00	4.00	30	13.3	14.23 (16.9%)
Oct 17	100.00	14.00	184	7.6	14.23 (16.9%)

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Want more examples? DAT Dividend | DAX Dividend