EB Dividend Type Payments
Although EB has no upcoming (meaning, Board-approved and announced) dividends, you can sell covered calls on Eventbrite, 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 1:25 PM ET):
| Eventbrite, Inc. Class A (EB) |
|---|
| Bid |
Ask |
Last |
Change |
Volume |
P/E |
Market Cap |
| 3.54 |
3.55 |
3.54 |
+0.06 |
564K |
- |
0.3B |
EB Dividend-Like Income Using Covered Calls
With EB at 3.54, 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% |
0.11 |
0.0 |
| 5% |
0.18 |
0.0 |
| 10% |
0.35 |
0.1 |
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 EB Using Covered Calls |
|---|
| Expiration |
Strike |
Call Bid |
Days |
Cents/Day |
Upside Potential |
| Jan 17 |
5.00 |
0.05 |
60 |
0.1 |
1.45 (41.0%) |
| Apr 17 |
5.00 |
0.05 |
150 |
0.0 |
1.45 (41.0%) |
| 5% Yield On EB Using Covered Calls |
|---|
| Expiration |
Strike |
Call Bid |
Days |
Cents/Day |
Upside Potential |
| Jan 17 |
5.00 |
0.05 |
60 |
0.1 |
1.45 (41.0%) |
| Jul 18 |
5.00 |
0.25 |
242 |
0.1 |
1.45 (41.0%) |
| 10% Yield On EB Using Covered Calls |
|---|
| Expiration |
Strike |
Call Bid |
Days |
Cents/Day |
Upside Potential |
| Jul 18 |
5.00 |
0.25 |
242 |
0.1 |
1.45 (41.0%) |
| Dec 19 |
5.00 |
0.55 |
396 |
0.1 |
1.45 (41.0%) |
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