EGHT Dividend Type Payments

8X 8 INC dividend

Although EGHT has no upcoming (meaning, Board-approved and announced) dividends, you can sell covered calls on 8X 8 INC to create 12 extra dividend type payments per year to boost its yield. Let's look at some recent prices (last updated Fri 4:16 PM ET):

8X 8 INC (EGHT)
Bid Ask Last Change Volume P/E Market Cap
17.75 20.41 17.81 -0.39 769K - 1.7B

EGHT Dividend-Like Income Using Covered Calls

With EGHT at 17.81, 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% 0.53 0.1
5% 0.89 0.2
10% 1.78 0.5

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 EGHT Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Feb 15 22.50 0.30 120 0.3 2.09 (11.7%)
May 17 22.50 0.65 211 0.3 2.09 (11.7%)
5% Yield On EGHT Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Feb 15 22.50 0.30 120 0.3 2.09 (11.7%)
May 17 22.50 0.65 211 0.3 2.09 (11.7%)

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