RVLV Dividend Type Payments
Although RVLV has no upcoming (meaning, Board-approved and announced) dividends, you can sell covered calls on Revolve Group, 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 Fri 4:16 PM ET):
| Revolve Group, Inc. Class A (RVLV) |
|---|
| Bid |
Ask |
Last |
Change |
Volume |
P/E |
Market Cap |
| 18.00 |
19.64 |
18.80 |
-0.10 |
2.7M |
27 |
1.3B |
RVLV Dividend-Like Income Using Covered Calls
With RVLV at 18.80, 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% |
0.56 |
0.2 |
| 5% |
0.94 |
0.3 |
| 10% |
1.88 |
0.5 |
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 RVLV Using Covered Calls |
|---|
| Expiration |
Strike |
Call Bid |
Days |
Cents/Day |
Upside Potential |
| May 16 |
20.00 |
1.60 |
43 |
3.7 |
0.36 (1.9%) |
| Apr 17 |
20.00 |
0.60 |
14 |
4.3 |
0.36 (1.9%) |
| 5% Yield On RVLV Using Covered Calls |
|---|
| Expiration |
Strike |
Call Bid |
Days |
Cents/Day |
Upside Potential |
| May 16 |
20.00 |
1.60 |
43 |
3.7 |
0.36 (1.9%) |
| Apr 17 |
20.00 |
0.60 |
14 |
4.3 |
0.36 (1.9%) |
| 10% Yield On RVLV Using Covered Calls |
|---|
| Expiration |
Strike |
Call Bid |
Days |
Cents/Day |
Upside Potential |
| May 16 |
20.00 |
1.60 |
43 |
3.7 |
0.36 (1.9%) |
| Apr 17 |
20.00 |
0.60 |
14 |
4.3 |
0.36 (1.9%) |
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