MKC Dividend Type Payments

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 Thu 10:30 AM ET):

McCormick & Company, Incorporated (MKC)
Bid	Ask	Last	Change	Volume	P/E	Market Cap
63.57	63.68	63.58	-0.98	187K	-	17B

MKC Dividend-Like Income Using Covered Calls

With MKC at 63.58, 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%	1.91	0.5
5%	3.18	0.9
10%	6.36	1.7

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 19	65.00	1.75	44	4.0	1.32 (2.1%)
Nov 21	65.00	0.70	16	4.4	1.32 (2.1%)

5% Yield On MKC Using Covered Calls
Expiration	Strike	Call Bid	Days	Cents/Day	Upside Potential
Dec 19	65.00	1.75	44	4.0	1.32 (2.1%)
Nov 21	65.00	0.70	16	4.4	1.32 (2.1%)

10% Yield On MKC Using Covered Calls
Expiration	Strike	Call Bid	Days	Cents/Day	Upside Potential
Dec 19	65.00	1.75	44	4.0	1.32 (2.1%)
Nov 21	65.00	0.70	16	4.4	1.32 (2.1%)

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Want more examples? MJ Dividend | MKL Dividend