CMG Dividend Type Payments

CHIPOTLE MEXICAN GRILL dividend

Although CMG has no upcoming (meaning, Board-approved and announced) dividends, you can sell covered calls on CHIPOTLE MEXICAN GRILL to create 12 extra dividend type payments per year to boost its yield. Let's look at some recent prices (last updated Wed 3:50 PM ET):

CHIPOTLE MEXICAN GRILL (CMG)
Bid Ask Last Change Volume P/E Market Cap
490.26 490.53 490.42 -1.08 298K 81 14B

CMG Dividend-Like Income Using Covered Calls

With CMG at 490.42, 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% 14.71 4.0
5% 24.52 6.7
10% 49.04 13.4

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 CMG Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Sep 21 502.50 0.30 3 10.0 11.97 (2.4%)
Sep 28 515.00 0.65 10 6.5 24.47 (5.0%)
5% Yield On CMG Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Sep 21 502.50 0.30 3 10.0 11.97 (2.4%)
Sep 28 512.50 0.85 10 8.5 21.97 (4.5%)
10% Yield On CMG Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Sep 21 500.00 0.60 3 20.0 9.47 (1.9%)
Sep 28 507.50 1.50 10 15.0 16.97 (3.5%)

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Top 10 Open Interest For Sep 21 Expiration     Top 5 High Yield
1.EEM dividend 6.GE dividend   1.TGTX dividend
2.SPY dividend 7.EWZ dividend   2.GERN dividend
3.SPX dividend 8.VXX dividend   3.CRON dividend
4.QQQ dividend 9.FXI dividend   4.GTXI dividend
5.XLF dividend 10.FB dividend   5.MU dividend

Want more examples? CMFN Dividend | CMI Dividend