MKC Dividend

Mccormick & Co, Inc dividend

Although MKC has a dividend of 0.57 with an ex-dividend date of Dec 28, you can sell covered calls on Mccormick & Co, Inc to create 12 extra dividend type payments per year to boost its yield. Let's look at some recent prices (last updated Mon 10:15 AM ET):

Mccormick & Co, Inc (MKC)
Bid Ask Last Change Volume P/E Market Cap
149.64 149.86 149.86 -1.71 158K - 0.0B

MKC Dividend-Like Income Using Covered Calls

With MKC at 149.86, 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% 4.50 1.2
5% 7.49 2.1
10% 14.99 4.1

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 MKC Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Dec 21 155.00 0.30 5 6.0 5.14 (3.4%)
Jan 18 160.00 0.65 33 2.0 10.14 (6.8%)
5% Yield On MKC Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Dec 21 155.00 0.30 5 6.0 5.14 (3.4%)
Jan 18 155.00 1.80 33 5.5 5.14 (3.4%)
10% Yield On MKC Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Dec 21 155.00 0.30 5 6.0 5.14 (3.4%)
Jan 18 155.00 1.80 33 5.5 5.14 (3.4%)

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