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 Tue 4:16 PM ET):
| MongoDB, Inc. - Class A (MDB) |
|---|
| Bid |
Ask |
Last |
Change |
Volume |
P/E |
Market Cap |
| 351.00 |
357.00 |
355.84 |
-13.21 |
1.8M |
- |
33B |
MDB Dividend-Like Income Using Covered Calls
With MDB at 355.84, 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% |
10.68 |
2.9 |
| 5% |
17.79 |
4.9 |
| 10% |
35.58 |
9.7 |
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 |
360.00 |
25.95 |
32 |
81.1 |
3.00 (0.8%) |
| Nov 7 |
357.50 |
6.15 |
4 |
153.8 |
0.50 (0.1%) |
| 5% Yield On MDB Using Covered Calls |
|---|
| Expiration |
Strike |
Call Bid |
Days |
Cents/Day |
Upside Potential |
| Dec 5 |
360.00 |
25.95 |
32 |
81.1 |
3.00 (0.8%) |
| Nov 7 |
357.50 |
6.15 |
4 |
153.8 |
0.50 (0.1%) |
| 10% Yield On MDB Using Covered Calls |
|---|
| Expiration |
Strike |
Call Bid |
Days |
Cents/Day |
Upside Potential |
| Dec 5 |
360.00 |
25.95 |
32 |
81.1 |
3.00 (0.8%) |
| Nov 7 |
357.50 |
6.15 |
4 |
153.8 |
0.50 (0.1%) |
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