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 Fri 4:16 PM ET):
| Datadog, Inc. - Class A (DDOG) |
|---|
| Bid |
Ask |
Last |
Change |
Volume |
P/E |
Market Cap |
| 162.50 |
162.85 |
162.81 |
+5.74 |
3.8M |
420 |
51B |
DDOG Dividend-Like Income Using Covered Calls
With DDOG at 162.81, 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% |
4.88 |
1.3 |
| 5% |
8.14 |
2.2 |
| 10% |
16.28 |
4.5 |
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 |
| Dec 5 |
162.50 |
9.45 |
36 |
25.3 |
0.00 (0.0%) |
| Nov 7 |
162.50 |
7.20 |
8 |
85.6 |
0.00 (0.0%) |
| 5% Yield On DDOG Using Covered Calls |
|---|
| Expiration |
Strike |
Call Bid |
Days |
Cents/Day |
Upside Potential |
| Dec 5 |
162.50 |
9.45 |
36 |
25.3 |
0.00 (0.0%) |
| Nov 7 |
162.50 |
7.20 |
8 |
85.6 |
0.00 (0.0%) |
| 10% Yield On DDOG Using Covered Calls |
|---|
| Expiration |
Strike |
Call Bid |
Days |
Cents/Day |
Upside Potential |
| Dec 5 |
162.50 |
9.45 |
36 |
25.3 |
0.00 (0.0%) |
| Nov 7 |
162.50 |
7.20 |
8 |
85.6 |
0.00 (0.0%) |
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