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 Mon 4:16 PM ET):
| MongoDB, Inc. - Class A (MDB) |
|---|
| Bid |
Ask |
Last |
Change |
Volume |
P/E |
Market Cap |
| 337.00 |
341.10 |
340.17 |
+6.60 |
939K |
- |
30B |
MDB Dividend-Like Income Using Covered Calls
With MDB at 340.17, 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% |
10.21 |
2.8 |
| 5% |
17.01 |
4.7 |
| 10% |
34.02 |
9.3 |
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 |
| Dec 5 |
340.00 |
22.05 |
40 |
52.4 |
0.00 (0.0%) |
| Nov 7 |
340.00 |
11.95 |
12 |
90.4 |
0.00 (0.0%) |
| 5% Yield On MDB Using Covered Calls |
|---|
| Expiration |
Strike |
Call Bid |
Days |
Cents/Day |
Upside Potential |
| Dec 5 |
340.00 |
22.05 |
40 |
52.4 |
0.00 (0.0%) |
| Nov 7 |
340.00 |
11.95 |
12 |
90.4 |
0.00 (0.0%) |
| 10% Yield On MDB Using Covered Calls |
|---|
| Expiration |
Strike |
Call Bid |
Days |
Cents/Day |
Upside Potential |
| Dec 5 |
340.00 |
22.05 |
40 |
52.4 |
0.00 (0.0%) |
| Nov 7 |
340.00 |
11.95 |
12 |
90.4 |
0.00 (0.0%) |
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