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 |
| 273.40 |
273.65 |
273.26 |
-16.74 |
1.5M |
- |
24B |
MDB Dividend-Like Income Using Covered Calls
With MDB at 273.26, 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% |
8.20 |
2.2 |
| 5% |
13.66 |
3.7 |
| 10% |
27.33 |
7.5 |
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 |
| Mar 7 |
272.50 |
21.70 |
15 |
137.0 |
0.00 (0.0%) |
| Mar 14 |
275.00 |
22.80 |
22 |
103.6 |
1.35 (0.5%) |
| 5% Yield On MDB Using Covered Calls |
|---|
| Expiration |
Strike |
Call Bid |
Days |
Cents/Day |
Upside Potential |
| Mar 7 |
272.50 |
21.70 |
15 |
137.0 |
0.00 (0.0%) |
| Mar 14 |
275.00 |
22.80 |
22 |
103.6 |
1.35 (0.5%) |
| 10% Yield On MDB Using Covered Calls |
|---|
| Expiration |
Strike |
Call Bid |
Days |
Cents/Day |
Upside Potential |
| Mar 7 |
272.50 |
21.70 |
15 |
137.0 |
0.00 (0.0%) |
| Mar 14 |
275.00 |
22.80 |
22 |
103.6 |
1.35 (0.5%) |
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