WDAY Dividend Type Payments

Workday, Inc. - Class A dividend

Although WDAY has no upcoming (meaning, Board-approved and announced) dividends, you can sell covered calls on Workday, 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 Tue 4:16 PM ET):

Workday, Inc. - Class A (WDAY)
Bid Ask Last Change Volume P/E Market Cap
216.51 217.30 216.93 -2.06 1.8M 102 58B

WDAY Dividend-Like Income Using Covered Calls

With WDAY at 216.93, 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% 6.51 1.8
5% 10.85 3.0
10% 21.69 5.9

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 WDAY Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Jan 2 217.50 1.05 4 26.3 0.20 (0.1%)
Feb 6 220.00 4.50 39 11.5 2.70 (1.2%)
5% Yield On WDAY Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Jan 2 217.50 1.05 4 26.3 0.20 (0.1%)
Feb 6 220.00 4.50 39 11.5 2.70 (1.2%)
10% Yield On WDAY Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Jan 2 217.50 1.05 4 26.3 0.20 (0.1%)
Feb 6 220.00 4.50 39 11.5 2.70 (1.2%)

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