CHD Dividend

Although CHD has a dividend of 0.30 with an ex-dividend date of May 15, you can sell covered calls on Church & Dwight Company, 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):

Church & Dwight Company, Inc. (CHD)
Bid	Ask	Last	Change	Volume	P/E	Market Cap
91.88	93.99	92.94	+0.56	3.1M	39	23B

CHD Dividend-Like Income Using Covered Calls

With CHD at 92.94, 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%	2.79	0.8
5%	4.65	1.3
10%	9.29	2.5

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 CHD Using Covered Calls
Expiration	Strike	Call Bid	Days	Cents/Day	Upside Potential
May 16	95.00	0.50	15	3.3	1.01 (1.1%)
Oct 17	100.00	2.35	169	1.4	6.01 (6.5%)

5% Yield On CHD Using Covered Calls
Expiration	Strike	Call Bid	Days	Cents/Day	Upside Potential
May 16	95.00	0.50	15	3.3	1.01 (1.1%)
Oct 17	100.00	2.35	169	1.4	6.01 (6.5%)

10% Yield On CHD Using Covered Calls
Expiration	Strike	Call Bid	Days	Cents/Day	Upside Potential
May 16	95.00	0.50	15	3.3	1.01 (1.1%)
Oct 17	95.00	4.40	169	2.6	1.01 (1.1%)

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Top 10 Open Interest For May 16 Expiration				Top 5 High Yield
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5.	QQQ dividend	10.	INTC dividend	5.	UPST dividend

Want more examples? CHCO Dividend | CHDN Dividend