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 |
90.54 |
231.89 |
226.27 |
+4.11 |
273K |
65 |
8.1B |
APPF Dividend-Like Income Using Covered Calls
With APPF at 226.27, 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% |
6.79 |
1.9 |
5% |
11.31 |
3.1 |
10% |
22.63 |
6.2 |
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 |
Nov 15 |
240.00 |
6.50 |
36 |
18.1 |
8.11 (3.6%) |
Dec 20 |
240.00 |
10.50 |
71 |
14.8 |
8.11 (3.6%) |
5% Yield On APPF Using Covered Calls |
Expiration |
Strike |
Call Bid |
Days |
Cents/Day |
Upside Potential |
Nov 15 |
240.00 |
6.50 |
36 |
18.1 |
8.11 (3.6%) |
Dec 20 |
240.00 |
10.50 |
71 |
14.8 |
8.11 (3.6%) |
10% Yield On APPF Using Covered Calls |
Expiration |
Strike |
Call Bid |
Days |
Cents/Day |
Upside Potential |
Nov 15 |
240.00 |
6.50 |
36 |
18.1 |
8.11 (3.6%) |
Dec 20 |
240.00 |
10.50 |
71 |
14.8 |
8.11 (3.6%) |
Want to increase dividends with covered calls? Sign Up For A Free Trial