WK Dividend Type Payments
Although WK has no upcoming (meaning, Board-approved and announced) dividends, you can sell covered calls on Workiva 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 11:10 AM ET):
| Workiva Inc. Class A (WK) |
|---|
| Bid |
Ask |
Last |
Change |
Volume |
P/E |
Market Cap |
| 69.53 |
69.68 |
69.60 |
+1.75 |
54K |
- |
3.8B |
WK Dividend-Like Income Using Covered Calls
With WK at 69.60, 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% |
2.09 |
0.6 |
| 5% |
3.48 |
1.0 |
| 10% |
6.96 |
1.9 |
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 WK Using Covered Calls |
|---|
| Expiration |
Strike |
Call Bid |
Days |
Cents/Day |
Upside Potential |
| Aug 15 |
70.00 |
3.20 |
44 |
7.3 |
0.32 (0.5%) |
| Oct 17 |
70.00 |
3.60 |
107 |
3.4 |
0.32 (0.5%) |
| 5% Yield On WK Using Covered Calls |
|---|
| Expiration |
Strike |
Call Bid |
Days |
Cents/Day |
Upside Potential |
| Aug 15 |
70.00 |
3.20 |
44 |
7.3 |
0.32 (0.5%) |
| Oct 17 |
70.00 |
3.60 |
107 |
3.4 |
0.32 (0.5%) |
| 10% Yield On WK Using Covered Calls |
|---|
| Expiration |
Strike |
Call Bid |
Days |
Cents/Day |
Upside Potential |
| Aug 15 |
70.00 |
3.20 |
44 |
7.3 |
0.32 (0.5%) |
| Oct 17 |
70.00 |
3.60 |
107 |
3.4 |
0.32 (0.5%) |
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