CL Dividend Type Payments

Colgate-Palmolive Company dividend

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

Colgate-Palmolive Company (CL)
Bid Ask Last Change Volume P/E Market Cap
86.55 89.20 89.29 +0.42 6.4M 32 73B

CL Dividend-Like Income Using Covered Calls

With CL at 89.29, 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% 2.68 0.7
5% 4.46 1.2
10% 8.93 2.4

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
May 3 89.00 1.50 9 14.4 0.00 (0.0%)
May 10 89.00 0.35 16 0.9 0.00 (0.0%)
5% Yield On CL Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
May 3 89.00 1.50 9 14.4 0.00 (0.0%)
May 10 90.00 1.05 16 6.6 0.80 (0.9%)
10% Yield On CL Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
May 3 89.00 1.50 9 14.4 0.00 (0.0%)
May 10 90.00 1.05 16 6.6 0.80 (0.9%)

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