Always important when discussing dividends is the fact that, in general, dividend amounts are not always predictable and tend to follow the ups and downs of profitability at each company. In the case of GameStop Corp, looking at the dividend history chart for GME below can help in judging whether the most recent dividend is likely to continue, and in turn whether it is a reasonable expectation to expect a 3% annualized dividend yield.
Below is a chart showing the trailing twelve month trading history for GameStop Corp, and highlighting in green where the $20 strike is located relative to that history:
The chart above, and the stock's historical volatility, can be a helpful guide in combination with fundamental analysis to judge whether selling the January 2015 put at the $20 strike for the 5.2% annualized rate of return represents good reward for the risks. We calculate the trailing twelve month volatility for GameStop Corp (considering the last 249 trading day closing values as well as today's price of $36.25) to be 36%. For other put options contract ideas at the various different available expirations, visit the GME Stock Options page of StockOptionsChannel.com.