KMB Dividend Type Payments

Kimberly-Clark Corp dividend

Although KMB has no upcoming (meaning, Board-approved and announced) dividends, you can sell covered calls on Kimberly-Clark Corp 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):

Kimberly-Clark Corp (KMB)
Bid Ask Last Change Volume P/E Market Cap
117.05 118.41 118.40 +4.48 2.6M - 0.0B

KMB Dividend-Like Income Using Covered Calls

With KMB at 118.40, 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% 3.55 1.0
5% 5.92 1.6
10% 11.84 3.2

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 KMB Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Dec 21 124.00 0.10 9 1.1 5.59 (4.7%)
Dec 28 124.00 0.25 16 1.6 5.59 (4.7%)
5% Yield On KMB Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Dec 21 123.00 0.20 9 2.2 4.59 (3.9%)
Dec 28 123.00 0.35 16 2.2 4.59 (3.9%)
10% Yield On KMB Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Dec 21 122.00 0.35 9 3.9 3.59 (3.0%)
Dec 28 122.00 0.60 16 3.8 3.59 (3.0%)

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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
3.SPX dividend 8.GE dividend   3. dividend
4.QQQ dividend 9.VXX dividend   4. dividend
5.IWM dividend 10.BAC dividend   5. dividend

Want more examples? KLIC Dividend | KMI Dividend