DOMO Dividend Type Payments
Although DOMO has no upcoming (meaning, Board-approved and announced) dividends, you can sell covered calls on Domo, Inc. - Class B to create 12 extra dividend type payments per year to boost its yield. Let's look at some recent prices (last updated Tue 12:00 PM ET):
| Domo, Inc. - Class B (DOMO) |
|---|
| Bid |
Ask |
Last |
Change |
Volume |
P/E |
Market Cap |
| 13.30 |
13.32 |
13.31 |
-0.40 |
90K |
- |
0.6B |
DOMO Dividend-Like Income Using Covered Calls
With DOMO at 13.31, 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% |
0.40 |
0.1 |
| 5% |
0.67 |
0.2 |
| 10% |
1.33 |
0.4 |
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 DOMO Using Covered Calls |
|---|
| Expiration |
Strike |
Call Bid |
Days |
Cents/Day |
Upside Potential |
| Aug 15 |
14.00 |
0.80 |
60 |
1.3 |
0.68 (5.1%) |
| Jul 18 |
14.00 |
0.50 |
32 |
1.6 |
0.68 (5.1%) |
| 5% Yield On DOMO Using Covered Calls |
|---|
| Expiration |
Strike |
Call Bid |
Days |
Cents/Day |
Upside Potential |
| Aug 15 |
14.00 |
0.80 |
60 |
1.3 |
0.68 (5.1%) |
| Jul 18 |
14.00 |
0.50 |
32 |
1.6 |
0.68 (5.1%) |
| 10% Yield On DOMO Using Covered Calls |
|---|
| Expiration |
Strike |
Call Bid |
Days |
Cents/Day |
Upside Potential |
| Aug 15 |
14.00 |
0.80 |
60 |
1.3 |
0.68 (5.1%) |
| Jul 18 |
14.00 |
0.50 |
32 |
1.6 |
0.68 (5.1%) |
Want to increase dividends with covered calls? Sign Up For A Free Trial
