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 Thu 4:16 PM ET):
| AppFolio, Inc. - Class A (APPF) |
|---|
| Bid |
Ask |
Last |
Change |
Volume |
P/E |
Market Cap |
| 202.90 |
243.98 |
224.41 |
-3.22 |
490K |
41 |
8.3B |
APPF Dividend-Like Income Using Covered Calls
With APPF at 224.41, 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% |
6.73 |
1.8 |
| 5% |
11.22 |
3.1 |
| 10% |
22.44 |
6.1 |
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 APPF Using Covered Calls |
|---|
| Expiration |
Strike |
Call Bid |
Days |
Cents/Day |
Upside Potential |
| May 16 |
250.00 |
6.00 |
44 |
13.6 |
6.02 (2.7%) |
| Apr 17 |
250.00 |
0.65 |
15 |
4.3 |
6.02 (2.7%) |
| 5% Yield On APPF Using Covered Calls |
|---|
| Expiration |
Strike |
Call Bid |
Days |
Cents/Day |
Upside Potential |
| May 16 |
250.00 |
6.00 |
44 |
13.6 |
6.02 (2.7%) |
| Apr 17 |
250.00 |
0.65 |
15 |
4.3 |
6.02 (2.7%) |
| 10% Yield On APPF Using Covered Calls |
|---|
| Expiration |
Strike |
Call Bid |
Days |
Cents/Day |
Upside Potential |
| May 16 |
250.00 |
6.00 |
44 |
13.6 |
6.02 (2.7%) |
| Oct 17 |
250.00 |
17.60 |
198 |
8.9 |
6.02 (2.7%) |
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