CL Dividend

COLGATE-PALMOLIVE dividend

Although CL has a dividend of 0.42 with an ex-dividend date of Oct 18, you can sell covered calls on COLGATE-PALMOLIVE 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):

COLGATE-PALMOLIVE (CL)
Bid Ask Last Change Volume P/E Market Cap
61.95 64.99 62.55 +0.01 3.3M 25 55B

CL Dividend-Like Income Using Covered Calls

With CL at 62.55, 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% 1.88 0.5
5% 3.13 0.9
10% 6.26 1.7

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 CL Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Oct 26 67.50 0.10 12 0.8 2.51 (4.0%)
Nov 2 68.00 0.11 19 0.6 3.01 (4.8%)
5% Yield On CL Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Oct 26 67.00 0.12 12 1.0 2.01 (3.2%)
Nov 2 67.00 0.18 19 0.9 2.01 (3.2%)
10% Yield On CL Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Oct 26 66.00 0.21 12 1.8 1.01 (1.6%)
Nov 2 65.50 0.37 19 1.9 0.51 (0.8%)

Want to increase dividends with covered calls?  Sign Up For A Free Trial

 
Top 10 Open Interest For Oct 19 Expiration     Top 5 High Yield
1.SPY dividend 6.MU dividend   1.CRON dividend
2.SPX dividend 7.FXI dividend   2.UVXY dividend
3.EEM dividend 8.BAC dividend   3.NIO dividend
4.QQQ dividend 9.AMD dividend   4.NFLX dividend
5.PBR dividend 10.XLF dividend   5.AMRN dividend

Want more examples? CKH Dividend | CLAR Dividend