Domino's Pizza Stock Looks Cheap Based on its Historical Yield - Shorting Puts Works Here

Domino's Pizza (DPZ) recently hiked its dividend by 15% on Feb. 24. As a result, DPZ stock still looks cheap based on its historical yield average. Moreover, 1-month out-of-the-money put options offer short-sellers a 2.0% monthly yield.

DPZ has risen over the last month from a low of $402.33 on Jan. 10 and closed Thursday at $471.28. Today it's trading at about $460. This article will show that DPZ still has +17% upside to $538.28 based on its historical yield averages. That makes it very attractive to short sellers of near-term put options with one-month yields of 2.0%.