MB Dividend Type Payments

MINDBODY INC CL A dividend

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

MINDBODY INC CL A (MB)
Bid Ask Last Change Volume P/E Market Cap
30.60 39.50 34.80 -1.50 1.1M - 1.7B

MB Dividend-Like Income Using Covered Calls

With MB at 34.80, 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% 1.04 0.3
5% 1.74 0.5
10% 3.48 1.0

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 MB Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Sep 21 40.00 0.15 33 0.5 0.50 (1.4%)
Oct 19 40.00 0.50 61 0.8 0.50 (1.4%)
5% Yield On MB Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Oct 19 40.00 0.50 61 0.8 0.50 (1.4%)
Dec 21 45.00 0.65 124 0.5 5.50 (15.8%)
10% Yield On MB Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Dec 21 40.00 1.55 124 1.3 0.50 (1.4%)
Mar 15 40.00 2.60 208 1.3 0.50 (1.4%)

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