CLX Dividend Type Payments

CLOROX dividend

Although CLX has no upcoming (meaning, Board-approved and announced) dividends, you can sell covered calls on CLOROX 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):

CLOROX (CLX)
Bid Ask Last Change Volume P/E Market Cap
142.35 148.00 146.77 +1.80 761K 23 19B

CLX Dividend-Like Income Using Covered Calls

With CLX at 146.77, 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% 4.40 1.2
5% 7.34 2.0
10% 14.68 4.0

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 CLX Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Aug 24 152.50 0.15 9 1.7 4.50 (3.1%)
Aug 31 155.00 0.20 16 1.3 7.00 (4.8%)
5% Yield On CLX Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Aug 24 150.00 0.50 9 5.6 2.00 (1.4%)
Aug 31 152.50 0.45 16 2.8 4.50 (3.1%)
10% Yield On CLX Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Aug 24 150.00 0.50 9 5.6 2.00 (1.4%)
Aug 31 150.00 1.00 16 6.3 2.00 (1.4%)

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Top 10 Open Interest For Aug 17 Expiration     Top 5 High Yield
1.SPY dividend 6.XLF dividend   1.AMAT dividend
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3.QQQ dividend 8.FXI dividend   3.UVXY dividend
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5.SPX dividend 10.AABA dividend   5.AKRX dividend

Want more examples? CLW Dividend | CM Dividend