MMC Dividend Type Payments
Although MMC has no upcoming (meaning, Board-approved and announced) dividends, you can sell covered calls on Marsh & McLennan Companies, Inc. to create 12 extra dividend type payments per year to boost its yield. Let's look at some recent prices (last updated Wed 4:16 PM ET):
Marsh & McLennan Companies, Inc. (MMC) | ||||||
---|---|---|---|---|---|---|
Bid | Ask | Last | Change | Volume | P/E | Market Cap |
210.00 | 218.95 | 212.72 | -5.11 | 3.9M | 27 | 107B |
MMC Dividend-Like Income Using Covered Calls
With MMC at 212.72, 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% | 6.38 | 1.7 |
5% | 10.64 | 2.9 |
10% | 21.27 | 5.8 |
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 MMC Using Covered Calls | ||||||
---|---|---|---|---|---|---|
Expiration | Strike | Call Bid | Days | Cents/Day | Upside Potential | |
Aug 15 | 220.00 | 3.40 | 45 | 7.6 | 1.05 (0.5%) | |
Oct 17 | 220.00 | 5.80 | 108 | 5.4 | 1.05 (0.5%) |
5% Yield On MMC Using Covered Calls | ||||||
---|---|---|---|---|---|---|
Expiration | Strike | Call Bid | Days | Cents/Day | Upside Potential | |
Aug 15 | 220.00 | 3.40 | 45 | 7.6 | 1.05 (0.5%) | |
Oct 17 | 220.00 | 5.80 | 108 | 5.4 | 1.05 (0.5%) |
10% Yield On MMC Using Covered Calls | ||||||
---|---|---|---|---|---|---|
Expiration | Strike | Call Bid | Days | Cents/Day | Upside Potential | |
Aug 15 | 220.00 | 3.40 | 45 | 7.6 | 1.05 (0.5%) | |
Jul 18 | 220.00 | 1.70 | 17 | 10.0 | 1.05 (0.5%) |
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Top 10 Open Interest For Jul 18 Expiration | Top 5 High Yield | |||||
---|---|---|---|---|---|---|
1. | NVDA dividend | 6. | GLD dividend | 1. | COGT dividend | |
2. | SLV dividend | 7. | AAPL dividend | 2. | RUN dividend | |
3. | SPY dividend | 8. | TLT dividend | 3. | OSCR dividend | |
4. | IWM dividend | 9. | FXI dividend | 4. | EOSE dividend | |
5. | TSLA dividend | 10. | QQQ dividend | 5. | ETSY dividend |
Want more examples? MLR Dividend | MMI Dividend