RMAX Dividend Type Payments

RE/MAX Holdings, Inc. Class A dividend

Although RMAX has no upcoming (meaning, Board-approved and announced) dividends, you can sell covered calls on RE/MAX Holdings, 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):

RE/MAX Holdings, Inc. Class A (RMAX)
Bid Ask Last Change Volume P/E Market Cap
7.09 7.77 7.29 -0.21 151K 20 0.1B

RMAX Dividend-Like Income Using Covered Calls

With RMAX at 7.29, 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% 0.22 0.1
5% 0.36 0.1
10% 0.73 0.2

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:

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Want more examples? RM Dividend | RMBS Dividend