DDOG Dividend Type Payments
Although DDOG has no upcoming (meaning, Board-approved and announced) dividends, you can sell covered calls on Datadog, 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):
| Datadog, Inc. - Class A (DDOG) |
|---|
| Bid |
Ask |
Last |
Change |
Volume |
P/E |
Market Cap |
| 113.50 |
113.50 |
113.53 |
+0.16 |
4.9M |
218 |
36B |
DDOG Dividend-Like Income Using Covered Calls
With DDOG at 113.53, 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% |
3.41 |
0.9 |
| 5% |
5.68 |
1.6 |
| 10% |
11.35 |
3.1 |
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 DDOG Using Covered Calls |
|---|
| Expiration |
Strike |
Call Bid |
Days |
Cents/Day |
Upside Potential |
| Apr 4 |
113.00 |
6.10 |
37 |
15.1 |
0.00 (0.0%) |
| Mar 7 |
113.00 |
2.69 |
9 |
24.3 |
0.00 (0.0%) |
| 5% Yield On DDOG Using Covered Calls |
|---|
| Expiration |
Strike |
Call Bid |
Days |
Cents/Day |
Upside Potential |
| Apr 4 |
113.00 |
6.10 |
37 |
15.1 |
0.00 (0.0%) |
| Mar 7 |
113.00 |
2.69 |
9 |
24.3 |
0.00 (0.0%) |
| 10% Yield On DDOG Using Covered Calls |
|---|
| Expiration |
Strike |
Call Bid |
Days |
Cents/Day |
Upside Potential |
| Apr 4 |
113.00 |
6.10 |
37 |
15.1 |
0.00 (0.0%) |
| Mar 7 |
113.00 |
2.69 |
9 |
24.3 |
0.00 (0.0%) |
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