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 Wed 4:16 PM ET):
| MongoDB, Inc. - Class A (MDB) |
|---|
| Bid |
Ask |
Last |
Change |
Volume |
P/E |
Market Cap |
| 315.01 |
315.38 |
315.38 |
-11.99 |
3.7M |
- |
29B |
MDB Dividend-Like Income Using Covered Calls
With MDB at 315.38, 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% |
9.46 |
2.6 |
| 5% |
15.77 |
4.3 |
| 10% |
31.54 |
8.6 |
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 |
| Oct 3 |
315.00 |
12.65 |
17 |
72.2 |
0.00 (0.0%) |
| Oct 10 |
315.00 |
14.25 |
24 |
57.8 |
0.00 (0.0%) |
| 5% Yield On MDB Using Covered Calls |
|---|
| Expiration |
Strike |
Call Bid |
Days |
Cents/Day |
Upside Potential |
| Oct 3 |
315.00 |
12.65 |
17 |
72.2 |
0.00 (0.0%) |
| Oct 10 |
315.00 |
14.25 |
24 |
57.8 |
0.00 (0.0%) |
| 10% Yield On MDB Using Covered Calls |
|---|
| Expiration |
Strike |
Call Bid |
Days |
Cents/Day |
Upside Potential |
| Oct 3 |
315.00 |
12.65 |
17 |
72.2 |
0.00 (0.0%) |
| Oct 10 |
315.00 |
14.25 |
24 |
57.8 |
0.00 (0.0%) |
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