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 |
| 203.44 |
204.48 |
204.43 |
-1.61 |
2.2M |
- |
18B |
MDB Dividend-Like Income Using Covered Calls
With MDB at 204.43, 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% |
6.13 |
1.7 |
| 5% |
10.22 |
2.8 |
| 10% |
20.44 |
5.6 |
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 |
| Aug 1 |
205.00 |
9.35 |
31 |
30.2 |
0.52 (0.3%) |
| Aug 8 |
205.00 |
10.75 |
38 |
28.3 |
0.52 (0.3%) |
| 5% Yield On MDB Using Covered Calls |
|---|
| Expiration |
Strike |
Call Bid |
Days |
Cents/Day |
Upside Potential |
| Aug 1 |
205.00 |
9.35 |
31 |
30.2 |
0.52 (0.3%) |
| Aug 8 |
205.00 |
10.75 |
38 |
28.3 |
0.52 (0.3%) |
| 10% Yield On MDB Using Covered Calls |
|---|
| Expiration |
Strike |
Call Bid |
Days |
Cents/Day |
Upside Potential |
| Aug 1 |
205.00 |
9.35 |
31 |
30.2 |
0.52 (0.3%) |
| Aug 8 |
205.00 |
10.75 |
38 |
28.3 |
0.52 (0.3%) |
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