SFIX Dividend Type Payments

Although SFIX has no upcoming (meaning, Board-approved and announced) dividends, you can sell covered calls on Stitch Fix, 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):

Stitch Fix, Inc. - Class A (SFIX)
Bid Ask Last Change Volume P/E Market Cap
3.61 3.69 3.67 +0.22 1.5M - 0.4B

SFIX Dividend-Like Income Using Covered Calls

With SFIX at 3.67, 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% 0.11 0.0
5% 0.18 0.1
10% 0.37 0.1

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 SFIX Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Jul 5 4.00 0.05 19 0.3 0.31 (8.4%)
Jul 12 4.00 0.10 26 0.4 0.31 (8.4%)
5% Yield On SFIX Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Jul 5 4.00 0.05 19 0.3 0.31 (8.4%)
Jul 12 4.00 0.10 26 0.4 0.31 (8.4%)
10% Yield On SFIX Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Jul 5 4.00 0.05 19 0.3 0.31 (8.4%)
Jul 12 4.00 0.10 26 0.4 0.31 (8.4%)

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