MCD Dividend Type Payments

McDonald's Corp dividend

Although MCD has no upcoming (meaning, Board-approved and announced) dividends, you can sell covered calls on McDonald's Corp to create 12 extra dividend type payments per year to boost its yield. Let's look at some recent prices (last updated Thu 12:05 PM ET):

McDonald's Corp (MCD)
Bid Ask Last Change Volume P/E Market Cap
197.40 197.45 197.41 -0.22 803K 26 151B

MCD Dividend-Like Income Using Covered Calls

With MCD at 197.41, 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% 5.92 1.6
5% 9.87 2.7
10% 19.74 5.4

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 MCD Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
May 3 210.00 0.22 9 2.4 12.55 (6.4%)
May 10 210.00 0.29 16 1.8 12.55 (6.4%)
5% Yield On MCD Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
May 3 207.50 0.43 9 4.8 10.05 (5.1%)
May 10 207.50 0.54 16 3.4 10.05 (5.1%)
10% Yield On MCD Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
May 3 205.00 0.79 9 8.8 7.55 (3.8%)
May 10 205.00 0.97 16 6.1 7.55 (3.8%)

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Top 10 Open Interest For May 17 Expiration     Top 5 High Yield
1.SPY dividend 6.QQQ dividend   1.MAT dividend
2.COTY dividend 7.BAC dividend   2.GRUB dividend
3.EEM dividend 8.XOP dividend   3.JNPR dividend
4.FXI dividend 9.EWZ dividend   4.AAL dividend
5.SPX dividend 10.VXXB dividend   5.F dividend

Want more examples? MCC Dividend | MCEP Dividend