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 |
276.20 |
284.13 |
278.45 |
-5.41 |
1.2M |
- |
23B |
MDB Dividend-Like Income Using Covered Calls
With MDB at 278.45, 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% |
8.35 |
2.3 |
5% |
13.92 |
3.8 |
10% |
27.85 |
7.6 |
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 4 |
285.00 |
4.80 |
15 |
32.0 |
0.87 (0.3%) |
Oct 11 |
285.00 |
6.90 |
22 |
31.4 |
0.87 (0.3%) |
5% Yield On MDB Using Covered Calls |
Expiration |
Strike |
Call Bid |
Days |
Cents/Day |
Upside Potential |
Oct 4 |
285.00 |
4.80 |
15 |
32.0 |
0.87 (0.3%) |
Oct 11 |
285.00 |
6.90 |
22 |
31.4 |
0.87 (0.3%) |
10% Yield On MDB Using Covered Calls |
Expiration |
Strike |
Call Bid |
Days |
Cents/Day |
Upside Potential |
Oct 4 |
285.00 |
4.80 |
15 |
32.0 |
0.87 (0.3%) |
Oct 11 |
285.00 |
6.90 |
22 |
31.4 |
0.87 (0.3%) |
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