MDB Dividend Type Payments
Although MDB has no upcoming (meaning, Board-approved and announced) dividends, you can sell covered calls on MongoDB, 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):
| MongoDB, Inc. - Class A (MDB) |
|---|
| Bid |
Ask |
Last |
Change |
Volume |
P/E |
Market Cap |
| 201.90 |
202.50 |
202.51 |
-6.76 |
1.7M |
- |
19B |
MDB Dividend-Like Income Using Covered Calls
With MDB at 202.51, 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% |
6.08 |
1.7 |
| 5% |
10.13 |
2.8 |
| 10% |
20.25 |
5.5 |
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 MDB Using Covered Calls |
|---|
| Expiration |
Strike |
Call Bid |
Days |
Cents/Day |
Upside Potential |
| Aug 1 |
205.00 |
7.45 |
22 |
33.9 |
2.50 (1.2%) |
| Aug 8 |
205.00 |
8.65 |
29 |
29.8 |
2.50 (1.2%) |
| 5% Yield On MDB Using Covered Calls |
|---|
| Expiration |
Strike |
Call Bid |
Days |
Cents/Day |
Upside Potential |
| Aug 1 |
205.00 |
7.45 |
22 |
33.9 |
2.50 (1.2%) |
| Aug 8 |
205.00 |
8.65 |
29 |
29.8 |
2.50 (1.2%) |
| 10% Yield On MDB Using Covered Calls |
|---|
| Expiration |
Strike |
Call Bid |
Days |
Cents/Day |
Upside Potential |
| Aug 1 |
205.00 |
7.45 |
22 |
33.9 |
2.50 (1.2%) |
| Aug 8 |
205.00 |
8.65 |
29 |
29.8 |
2.50 (1.2%) |
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