AFYA Dividend Type Payments
Although AFYA has no upcoming (meaning, Board-approved and announced) dividends, you can sell covered calls on Afya Limited - Class A Common Shares to create 12 extra dividend type payments per year to boost its yield. Let's look at some recent prices (last updated Tue 4:16 PM ET):
| Afya Limited - Class A Common Shares (AFYA) |
|---|
| Bid |
Ask |
Last |
Change |
Volume |
P/E |
Market Cap |
| 16.20 |
19.07 |
19.06 |
+0.11 |
141K |
17 |
1.8B |
AFYA Dividend-Like Income Using Covered Calls
With AFYA at 19.06, 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% |
0.57 |
0.2 |
| 5% |
0.95 |
0.3 |
| 10% |
1.91 |
0.5 |
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 AFYA Using Covered Calls |
|---|
| Expiration |
Strike |
Call Bid |
Days |
Cents/Day |
Upside Potential |
| May 16 |
20.00 |
0.05 |
11 |
0.5 |
0.93 (4.9%) |
| Sep 19 |
20.00 |
0.25 |
137 |
0.2 |
0.93 (4.9%) |
| 5% Yield On AFYA Using Covered Calls |
|---|
| Expiration |
Strike |
Call Bid |
Days |
Cents/Day |
Upside Potential |
| May 16 |
20.00 |
0.05 |
11 |
0.5 |
0.93 (4.9%) |
| Jun 20 |
20.00 |
0.35 |
46 |
0.8 |
0.93 (4.9%) |
| 10% Yield On AFYA Using Covered Calls |
|---|
| Expiration |
Strike |
Call Bid |
Days |
Cents/Day |
Upside Potential |
| Jun 20 |
20.00 |
0.35 |
46 |
0.8 |
0.93 (4.9%) |
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