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 Thu 4:16 PM ET):
| MongoDB, Inc. - Class A (MDB) |
|---|
| Bid |
Ask |
Last |
Change |
Volume |
P/E |
Market Cap |
| 158.00 |
163.00 |
159.26 |
-0.78 |
1.5M |
- |
14B |
MDB Dividend-Like Income Using Covered Calls
With MDB at 159.26, 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% |
4.78 |
1.3 |
| 5% |
7.96 |
2.2 |
| 10% |
15.93 |
4.4 |
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 |
| May 2 |
162.50 |
6.05 |
16 |
34.7 |
0.00 (0.0%) |
| May 9 |
165.00 |
6.65 |
23 |
28.9 |
2.00 (1.3%) |
| 5% Yield On MDB Using Covered Calls |
|---|
| Expiration |
Strike |
Call Bid |
Days |
Cents/Day |
Upside Potential |
| May 2 |
162.50 |
6.05 |
16 |
34.7 |
0.00 (0.0%) |
| May 9 |
165.00 |
6.65 |
23 |
28.9 |
2.00 (1.3%) |
| 10% Yield On MDB Using Covered Calls |
|---|
| Expiration |
Strike |
Call Bid |
Days |
Cents/Day |
Upside Potential |
| May 2 |
162.50 |
6.05 |
16 |
34.7 |
0.00 (0.0%) |
| May 9 |
165.00 |
6.65 |
23 |
28.9 |
2.00 (1.3%) |
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