APPF Dividend Type Payments
Although APPF has no upcoming (meaning, Board-approved and announced) dividends, you can sell covered calls on AppFolio, 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 Wed 4:16 PM ET):
| AppFolio, Inc. - Class A (APPF) |
|---|
| Bid |
Ask |
Last |
Change |
Volume |
P/E |
Market Cap |
| 212.85 |
284.70 |
238.01 |
-2.30 |
146K |
43 |
8.6B |
APPF Dividend-Like Income Using Covered Calls
With APPF at 238.01, 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% |
7.14 |
2.0 |
| 5% |
11.90 |
3.3 |
| 10% |
23.80 |
6.5 |
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 APPF Using Covered Calls |
|---|
| Expiration |
Strike |
Call Bid |
Days |
Cents/Day |
Upside Potential |
| Dec 19 |
290.00 |
1.55 |
59 |
2.6 |
5.30 (2.2%) |
| Nov 21 |
290.00 |
0.75 |
31 |
2.4 |
5.30 (2.2%) |
| 5% Yield On APPF Using Covered Calls |
|---|
| Expiration |
Strike |
Call Bid |
Days |
Cents/Day |
Upside Potential |
| May 15 |
290.00 |
14.40 |
206 |
7.0 |
5.30 (2.2%) |
| Jan 16 |
290.00 |
4.20 |
87 |
4.8 |
5.30 (2.2%) |
| 10% Yield On APPF Using Covered Calls |
|---|
| Expiration |
Strike |
Call Bid |
Days |
Cents/Day |
Upside Potential |
| May 15 |
290.00 |
14.40 |
206 |
7.0 |
5.30 (2.2%) |
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