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 Wed 4:16 PM ET):
| AppFolio, Inc. - Class A (APPF) |
|---|
| Bid |
Ask |
Last |
Change |
Volume |
P/E |
Market Cap |
| 140.00 |
245.31 |
228.54 |
+20.30 |
320K |
38 |
7.6B |
APPF Dividend-Like Income Using Covered Calls
With APPF at 228.54, 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% |
6.86 |
1.9 |
| 5% |
11.43 |
3.1 |
| 10% |
22.85 |
6.3 |
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 |
7.10 |
38 |
18.7 |
4.69 (2.1%) |
| Apr 17 |
250.00 |
0.40 |
9 |
4.4 |
4.69 (2.1%) |
| 5% Yield On APPF Using Covered Calls |
|---|
| Expiration |
Strike |
Call Bid |
Days |
Cents/Day |
Upside Potential |
| May 16 |
250.00 |
7.10 |
38 |
18.7 |
4.69 (2.1%) |
| Apr 17 |
250.00 |
0.40 |
9 |
4.4 |
4.69 (2.1%) |
| 10% Yield On APPF Using Covered Calls |
|---|
| Expiration |
Strike |
Call Bid |
Days |
Cents/Day |
Upside Potential |
| May 16 |
250.00 |
7.10 |
38 |
18.7 |
4.69 (2.1%) |
| Oct 17 |
250.00 |
19.50 |
192 |
10.2 |
4.69 (2.1%) |
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