MMC Dividend Type Payments
Although MMC has no upcoming (meaning, Board-approved and announced) dividends, you can sell covered calls on MARSH & MCLENNAN to create 12 extra dividend type payments per year to boost its yield. Let's look at some recent prices (last updated Thu 4:16 PM ET):
| MARSH & MCLENNAN (MMC) | ||||||
|---|---|---|---|---|---|---|
| Bid | Ask | Last | Change | Volume | P/E | Market Cap |
| 74.58 | 83.40 | 80.05 | -0.86 | 1.0M | 25 | 41B |
MMC Dividend-Like Income Using Covered Calls
With MMC at 80.05, 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% | 2.40 | 0.7 |
| 5% | 4.00 | 1.1 |
| 10% | 8.01 | 2.2 |
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 | |
| Nov 16 | 85.00 | 0.20 | 30 | 0.7 | 1.60 (2.0%) | |
| Jan 18 | 85.00 | 0.80 | 93 | 0.9 | 1.60 (2.0%) | |
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| Top 10 Open Interest For Oct 19 Expiration | Top 5 High Yield | |||||
|---|---|---|---|---|---|---|
| 1. | SPY dividend | 6. | PBR dividend | 1. | LLNW dividend | |
| 2. | SPX dividend | 7. | MU dividend | 2. | CLF dividend | |
| 3. | QQQ dividend | 8. | IWM dividend | 3. | PYPL dividend | |
| 4. | EEM dividend | 9. | FXI dividend | 4. | SKX dividend | |
| 5. | BAC dividend | 10. | AMD dividend | 5. | UVXY dividend | |
Want more examples? MLTI Dividend | MMI Dividend
