WK Dividend Type Payments
Although WK has no upcoming (meaning, Board-approved and announced) dividends, you can sell covered calls on Workiva 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):
| Workiva Inc. Class A (WK) |
|---|
| Bid |
Ask |
Last |
Change |
Volume |
P/E |
Market Cap |
| 66.26 |
75.01 |
71.71 |
+0.70 |
437K |
- |
4.0B |
WK Dividend-Like Income Using Covered Calls
With WK at 71.71, 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% |
2.15 |
0.6 |
| 5% |
3.59 |
1.0 |
| 10% |
7.17 |
2.0 |
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 WK Using Covered Calls |
|---|
| Expiration |
Strike |
Call Bid |
Days |
Cents/Day |
Upside Potential |
| Aug 15 |
75.00 |
0.80 |
38 |
2.1 |
0.00 (0.0%) |
| Oct 17 |
75.00 |
2.40 |
101 |
2.4 |
0.00 (0.0%) |
| 5% Yield On WK Using Covered Calls |
|---|
| Expiration |
Strike |
Call Bid |
Days |
Cents/Day |
Upside Potential |
| Aug 15 |
75.00 |
0.80 |
38 |
2.1 |
0.00 (0.0%) |
| Oct 17 |
75.00 |
2.40 |
101 |
2.4 |
0.00 (0.0%) |
| 10% Yield On WK Using Covered Calls |
|---|
| Expiration |
Strike |
Call Bid |
Days |
Cents/Day |
Upside Potential |
| Aug 15 |
75.00 |
0.80 |
38 |
2.1 |
0.00 (0.0%) |
| Oct 17 |
75.00 |
2.40 |
101 |
2.4 |
0.00 (0.0%) |
Want to increase dividends with covered calls? Sign Up For A Free Trial
