CL Dividend Type Payments

Colgate-Palmolive Co dividend

Although CL has no upcoming (meaning, Board-approved and announced) dividends, you can sell covered calls on Colgate-Palmolive Co 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):

Colgate-Palmolive Co (CL)
Bid Ask Last Change Volume P/E Market Cap
64.95 67.89 65.17 -0.30 4.9M - 0.0B

CL Dividend-Like Income Using Covered Calls

With CL at 65.17, 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% 1.96 0.5
5% 3.26 0.9
10% 6.52 1.8

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
Dec 21 68.00 0.09 8 1.1 0.11 (0.2%)
Dec 28 69.00 0.12 15 0.8 1.11 (1.7%)
5% Yield On CL Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Dec 21 68.00 0.09 8 1.1 0.11 (0.2%)
Dec 28 68.00 0.22 15 1.5 0.11 (0.2%)
10% Yield On CL Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Jan 11 68.00 0.54 29 1.9 0.11 (0.2%)
Jan 25 69.00 0.88 43 2.0 1.11 (1.7%)

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Top 10 Open Interest For Dec 21 Expiration     Top 5 High Yield
1.SPY dividend 6.EWZ dividend   1. dividend
2.EEM dividend 7.FXI dividend   2. dividend
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4.QQQ dividend 9.BAC dividend   4. dividend
5.IWM dividend 10.VXX dividend   5. dividend

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