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 1:05 PM ET):
| AppFolio, Inc. - Class A (APPF) |
|---|
| Bid |
Ask |
Last |
Change |
Volume |
P/E |
Market Cap |
| 178.39 |
179.06 |
178.69 |
-9.61 |
245K |
49 |
6.8B |
APPF Dividend-Like Income Using Covered Calls
With APPF at 178.69, 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% |
5.36 |
1.5 |
| 5% |
8.93 |
2.4 |
| 10% |
17.87 |
4.9 |
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 APPF Using Covered Calls |
|---|
| Expiration |
Strike |
Call Bid |
Days |
Cents/Day |
Upside Potential |
| Feb 20 |
180.00 |
3.80 |
10 |
38.0 |
0.94 (0.5%) |
| Mar 20 |
180.00 |
8.90 |
38 |
23.4 |
0.94 (0.5%) |
| 5% Yield On APPF Using Covered Calls |
|---|
| Expiration |
Strike |
Call Bid |
Days |
Cents/Day |
Upside Potential |
| Feb 20 |
180.00 |
3.80 |
10 |
38.0 |
0.94 (0.5%) |
| Mar 20 |
180.00 |
8.90 |
38 |
23.4 |
0.94 (0.5%) |
| 10% Yield On APPF Using Covered Calls |
|---|
| Expiration |
Strike |
Call Bid |
Days |
Cents/Day |
Upside Potential |
| Feb 20 |
180.00 |
3.80 |
10 |
38.0 |
0.94 (0.5%) |
| Mar 20 |
180.00 |
8.90 |
38 |
23.4 |
0.94 (0.5%) |
Want to increase dividends with covered calls? Sign Up For A Free Trial
