DBX Dividend Type Payments

Although DBX has no upcoming (meaning, Board-approved and announced) dividends, you can sell covered calls on Dropbox, Inc to create 12 extra dividend type payments per year to boost its yield. Let's look at some recent prices (last updated Mon 3:35 PM ET):

Dropbox, Inc (DBX)
Bid Ask Last Change Volume P/E Market Cap
26.15 26.16 26.16 +0.29 2.1M -10.2 11B

DBX Dividend-Like Income Using Covered Calls

With DBX at 26.16, here's a table showing how big the annual "dividend" (ie. 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% 0.78 0.2
5% 1.31 0.4
10% 2.62 0.7

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 DBX Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Jul 19 27.00 0.10 5 2.0 0.84 (3.2%)
Jul 26 28.00 0.05 12 0.4 1.84 (7.0%)
5% Yield On DBX Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Jul 19 27.00 0.10 5 2.0 0.84 (3.2%)
Jul 26 28.00 0.05 12 0.4 1.84 (7.0%)
10% Yield On DBX Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Jul 19 27.00 0.10 5 2.0 0.84 (3.2%)
Jul 26 27.50 0.15 12 1.3 1.34 (5.1%)

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Top 10 Open Interest For Jul 19 Expiration     Top 5 High Yield
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Want more examples? DBVT Dividend | DCHF Dividend