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 Fri 4:16 PM ET):
| AppFolio, Inc. - Class A (APPF) |
|---|
| Bid |
Ask |
Last |
Change |
Volume |
P/E |
Market Cap |
| 314.00 |
340.00 |
319.15 |
+51.77 |
1.1M |
50 |
10B |
APPF Dividend-Like Income Using Covered Calls
With APPF at 319.15, 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% |
9.57 |
2.6 |
| 5% |
15.96 |
4.4 |
| 10% |
31.92 |
8.7 |
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 |
| Oct 17 |
340.00 |
7.90 |
78 |
10.1 |
0.00 (0.0%) |
| Sep 19 |
340.00 |
3.70 |
50 |
7.4 |
0.00 (0.0%) |
| 5% Yield On APPF Using Covered Calls |
|---|
| Expiration |
Strike |
Call Bid |
Days |
Cents/Day |
Upside Potential |
| Oct 17 |
340.00 |
7.90 |
78 |
10.1 |
0.00 (0.0%) |
| Sep 19 |
340.00 |
3.70 |
50 |
7.4 |
0.00 (0.0%) |
| 10% Yield On APPF Using Covered Calls |
|---|
| Expiration |
Strike |
Call Bid |
Days |
Cents/Day |
Upside Potential |
| Oct 17 |
340.00 |
7.90 |
78 |
10.1 |
0.00 (0.0%) |
| Jan 16 |
340.00 |
19.40 |
169 |
11.5 |
0.00 (0.0%) |
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