APPN Dividend Type Payments
Although APPN has no upcoming (meaning, Board-approved and announced) dividends, you can sell covered calls on Appian Corporation - Class A to create 12 extra dividend type payments per year to boost its yield. Let's look at some recent prices (last updated Mon 4:16 PM ET):
| Appian Corporation - Class A (APPN) |
|---|
| Bid |
Ask |
Last |
Change |
Volume |
P/E |
Market Cap |
| 36.00 |
38.00 |
36.54 |
+0.11 |
383K |
- |
2.7B |
APPN Dividend-Like Income Using Covered Calls
With APPN at 36.54, 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% |
1.10 |
0.3 |
| 5% |
1.83 |
0.5 |
| 10% |
3.65 |
1.0 |
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 APPN Using Covered Calls |
|---|
| Expiration |
Strike |
Call Bid |
Days |
Cents/Day |
Upside Potential |
| Dec 20 |
40.00 |
0.60 |
33 |
1.8 |
2.00 (5.5%) |
| May 16 |
40.00 |
3.70 |
180 |
2.1 |
2.00 (5.5%) |
| 5% Yield On APPN Using Covered Calls |
|---|
| Expiration |
Strike |
Call Bid |
Days |
Cents/Day |
Upside Potential |
| Dec 20 |
40.00 |
0.60 |
33 |
1.8 |
2.00 (5.5%) |
| May 16 |
40.00 |
3.70 |
180 |
2.1 |
2.00 (5.5%) |
| 10% Yield On APPN Using Covered Calls |
|---|
| Expiration |
Strike |
Call Bid |
Days |
Cents/Day |
Upside Potential |
| Dec 20 |
40.00 |
0.60 |
33 |
1.8 |
2.00 (5.5%) |
| May 16 |
40.00 |
3.70 |
180 |
2.1 |
2.00 (5.5%) |
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