ECL Dividend

ECOLAB dividend

Although ECL has a dividend of 0.41 with an ex-dividend date of Sep 17, you can sell covered calls on ECOLAB to create 12 extra dividend type payments per year to boost its yield. Let's look at some recent prices (last updated Thu 1:15 PM ET):

ECOLAB (ECL)
Bid Ask Last Change Volume P/E Market Cap
146.94 146.99 146.95 +0.88 235K 27 42B

ECL Dividend-Like Income Using Covered Calls

With ECL at 146.95, 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% 4.41 1.2
5% 7.35 2.0
10% 14.70 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 ECL Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Aug 24 150.00 0.15 9 1.7 3.01 (2.0%)
Aug 31 150.00 0.45 16 2.8 3.01 (2.0%)
5% Yield On ECL Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Aug 24 149.00 0.35 9 3.9 2.01 (1.4%)
Aug 31 150.00 0.45 16 2.8 3.01 (2.0%)
10% Yield On ECL Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Aug 24 148.00 0.60 9 6.7 1.01 (0.7%)
Aug 31 149.00 0.65 16 4.1 2.01 (1.4%)

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Top 10 Open Interest For Aug 17 Expiration     Top 5 High Yield
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Want more examples? ECHO Dividend | ECNS Dividend