SFIX Dividend Type Payments
Although SFIX has no upcoming (meaning, Board-approved and announced) dividends, you can sell covered calls on Stitch Fix, 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 Mon 4:16 PM ET):
| Stitch Fix, Inc. - Class A (SFIX) |
|---|
| Bid |
Ask |
Last |
Change |
Volume |
P/E |
Market Cap |
| 3.81 |
4.24 |
4.14 |
-0.10 |
2.7M |
- |
0.5B |
SFIX Dividend-Like Income Using Covered Calls
With SFIX at 4.14, 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% |
0.12 |
0.0 |
| 5% |
0.21 |
0.1 |
| 10% |
0.41 |
0.1 |
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 SFIX Using Covered Calls |
|---|
| Expiration |
Strike |
Call Bid |
Days |
Cents/Day |
Upside Potential |
| Apr 4 |
5.00 |
0.10 |
26 |
0.4 |
0.76 (18.4%) |
| Mar 14 |
4.50 |
0.30 |
5 |
6.0 |
0.26 (6.3%) |
| 5% Yield On SFIX Using Covered Calls |
|---|
| Expiration |
Strike |
Call Bid |
Days |
Cents/Day |
Upside Potential |
| Apr 4 |
5.00 |
0.10 |
26 |
0.4 |
0.76 (18.4%) |
| Mar 14 |
4.50 |
0.30 |
5 |
6.0 |
0.26 (6.3%) |
| 10% Yield On SFIX Using Covered Calls |
|---|
| Expiration |
Strike |
Call Bid |
Days |
Cents/Day |
Upside Potential |
| Apr 4 |
5.00 |
0.10 |
26 |
0.4 |
0.76 (18.4%) |
| Mar 14 |
4.50 |
0.30 |
5 |
6.0 |
0.26 (6.3%) |
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