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 4:16 PM ET):
| Workiva Inc. Class A (WK) |
|---|
| Bid |
Ask |
Last |
Change |
Volume |
P/E |
Market Cap |
| 62.99 |
71.09 |
67.63 |
+0.23 |
345K |
- |
3.8B |
WK Dividend-Like Income Using Covered Calls
With WK at 67.63, 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% |
2.03 |
0.6 |
| 5% |
3.38 |
0.9 |
| 10% |
6.76 |
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 |
| May 16 |
75.00 |
0.30 |
30 |
1.0 |
3.91 (5.8%) |
| Oct 17 |
75.00 |
4.50 |
184 |
2.4 |
3.91 (5.8%) |
| 5% Yield On WK Using Covered Calls |
|---|
| Expiration |
Strike |
Call Bid |
Days |
Cents/Day |
Upside Potential |
| May 16 |
75.00 |
0.30 |
30 |
1.0 |
3.91 (5.8%) |
| Oct 17 |
75.00 |
4.50 |
184 |
2.4 |
3.91 (5.8%) |
| 10% Yield On WK Using Covered Calls |
|---|
| Expiration |
Strike |
Call Bid |
Days |
Cents/Day |
Upside Potential |
| Oct 17 |
75.00 |
4.50 |
184 |
2.4 |
3.91 (5.8%) |
| Dec 19 |
75.00 |
5.90 |
247 |
2.4 |
3.91 (5.8%) |
Want to increase dividends with covered calls? Sign Up For A Free Trial
