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 Mon 4:16 PM ET):
| AppFolio, Inc. - Class A (APPF) |
|---|
| Bid |
Ask |
Last |
Change |
Volume |
P/E |
Market Cap |
| 200.00 |
264.59 |
224.52 |
-6.91 |
294K |
42 |
8.3B |
APPF Dividend-Like Income Using Covered Calls
With APPF at 224.52, 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% |
6.74 |
1.8 |
| 5% |
11.23 |
3.1 |
| 10% |
22.45 |
6.2 |
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 |
| May 15 |
270.00 |
10.50 |
152 |
6.9 |
5.41 (2.4%) |
| Apr 17 |
270.00 |
6.10 |
124 |
4.9 |
5.41 (2.4%) |
| 5% Yield On APPF Using Covered Calls |
|---|
| Expiration |
Strike |
Call Bid |
Days |
Cents/Day |
Upside Potential |
| May 15 |
270.00 |
10.50 |
152 |
6.9 |
5.41 (2.4%) |
| Apr 17 |
270.00 |
6.10 |
124 |
4.9 |
5.41 (2.4%) |
| 10% Yield On APPF Using Covered Calls |
|---|
| Expiration |
Strike |
Call Bid |
Days |
Cents/Day |
Upside Potential |
| May 15 |
270.00 |
10.50 |
152 |
6.9 |
5.41 (2.4%) |
| Jul 17 |
270.00 |
14.50 |
215 |
6.7 |
5.41 (2.4%) |
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