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 |
| 31.62 |
34.43 |
32.89 |
-0.62 |
752K |
60 |
2.4B |
RVLV Dividend-Like Income Using Covered Calls
With RVLV at 32.89, 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% |
0.99 |
0.3 |
| 5% |
1.64 |
0.5 |
| 10% |
3.29 |
0.9 |
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 |
| Dec 20 |
35.00 |
1.10 |
36 |
3.1 |
0.57 (1.7%) |
| Jan 17 |
35.00 |
1.85 |
64 |
2.9 |
0.57 (1.7%) |
| 5% Yield On RVLV Using Covered Calls |
|---|
| Expiration |
Strike |
Call Bid |
Days |
Cents/Day |
Upside Potential |
| Dec 20 |
35.00 |
1.10 |
36 |
3.1 |
0.57 (1.7%) |
| Jan 17 |
35.00 |
1.85 |
64 |
2.9 |
0.57 (1.7%) |
| 10% Yield On RVLV Using Covered Calls |
|---|
| Expiration |
Strike |
Call Bid |
Days |
Cents/Day |
Upside Potential |
| Dec 20 |
35.00 |
1.10 |
36 |
3.1 |
0.57 (1.7%) |
| Jan 17 |
35.00 |
1.85 |
64 |
2.9 |
0.57 (1.7%) |
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