IMO Dividend

Although IMO has a dividend of 0.14 with an ex-dividend date of Mar 1, you can sell covered calls on Imperial Oil to create 12 extra dividend type payments per year to boost its yield. Let's look at some recent prices (last updated Tue 4:16 PM ET):

Imperial Oil (IMO)
Bid	Ask	Last	Change	Volume	P/E	Market Cap
25.70	27.82	27.82	+0.49	209K	22	21B

IMO Dividend-Like Income Using Covered Calls

With IMO at 27.82, 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%	0.83	0.2
5%	1.39	0.4
10%	2.78	0.8

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 IMO Using Covered Calls
Expiration	Strike	Call Bid	Days	Cents/Day	Upside Potential
May 17	30.00	0.55	88	0.6	2.18 (7.8%)
Aug 16	30.00	1.10	179	0.6	2.18 (7.8%)

5% Yield On IMO Using Covered Calls
Expiration	Strike	Call Bid	Days	Cents/Day	Upside Potential
May 17	30.00	0.55	88	0.6	2.18 (7.8%)
Aug 16	30.00	1.10	179	0.6	2.18 (7.8%)

Want to increase dividends with covered calls? Sign Up For A Free Trial

Top 10 Open Interest For Mar 15 Expiration				Top 5 High Yield
1.	SPX dividend	6.	EWZ dividend	1.	ROKU dividend
2.	EEM dividend	7.	GE dividend	2.	IQ dividend
3.	SPY dividend	8.	BAC dividend	3.	BHC dividend
4.	QQQ dividend	9.	XOP dividend	4.	DBX dividend
5.	FXI dividend	10.	GLD dividend	5.	VIPS dividend

Want more examples? IMMY Dividend | IMOS Dividend