MKC Dividend Type Payments

McCormick & Company, Incorporated dividend

Although MKC has no upcoming (meaning, Board-approved and announced) dividends, you can sell covered calls on McCormick & Company, Incorporated to create 12 extra dividend type payments per year to boost its yield. Let's look at some recent prices (last updated Fri 4:16 PM ET):

McCormick & Company, Incorporated (MKC)
Bid Ask Last Change Volume P/E Market Cap
71.11 73.83 71.95 -0.49 1.8M - 19B

MKC Dividend-Like Income Using Covered Calls

With MKC at 71.95, here's a table showing how big the annual "dividend" (i.e. 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% 2.16 0.6
5% 3.60 1.0
10% 7.20 2.0

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 MKC Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Aug 15 75.00 0.75 36 2.1 1.17 (1.6%)
Sep 19 75.00 1.35 71 1.9 1.17 (1.6%)
5% Yield On MKC Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Aug 15 75.00 0.75 36 2.1 1.17 (1.6%)
Sep 19 75.00 1.35 71 1.9 1.17 (1.6%)
10% Yield On MKC Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Aug 15 75.00 0.75 36 2.1 1.17 (1.6%)

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