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 Tue 12:50 PM ET):

8X 8 INC (EGHT)
Bid Ask Last Change Volume P/E Market Cap
22.50 22.55 22.50 +0.50 160K - 2.1B

EGHT Dividend-Like Income Using Covered Calls

With EGHT at 22.50, 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% 0.68 0.2
5% 1.13 0.3
10% 2.25 0.6

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
Aug 17 22.50 0.25 4 5.0 0.00 (0.0%)
Sep 21 25.00 0.15 39 0.4 2.45 (10.9%)
5% Yield On EGHT Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Aug 17 22.50 0.25 4 5.0 0.00 (0.0%)
Sep 21 25.00 0.15 39 0.4 2.45 (10.9%)
10% Yield On EGHT Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Aug 17 22.50 0.25 4 5.0 0.00 (0.0%)
Sep 21 22.50 0.90 39 2.2 0.00 (0.0%)

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