MRK Dividend

Although MRK has a dividend of 0.81 with an ex-dividend date of Sep 15, you can sell covered calls on Merck & Company, Inc. (new) to create 12 extra dividend type payments per year to boost its yield. Let's look at some recent prices (last updated Fri 2:05 PM ET):

Merck & Company, Inc. (new) (MRK)
Bid	Ask	Last	Change	Volume	P/E	Market Cap
80.77	80.79	80.79	+0.42	3.5M	12	201B

MRK Dividend-Like Income Using Covered Calls

With MRK at 80.79, 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%	2.42	0.7
5%	4.04	1.1
10%	8.08	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 MRK Using Covered Calls
Expiration	Strike	Call Bid	Days	Cents/Day	Upside Potential
Sep 5	81.00	2.31	29	8.0	0.21 (0.3%)
Sep 12	81.00	2.60	36	7.2	0.21 (0.3%)

5% Yield On MRK Using Covered Calls
Expiration	Strike	Call Bid	Days	Cents/Day	Upside Potential
Sep 5	81.00	2.31	29	8.0	0.21 (0.3%)
Sep 12	81.00	2.60	36	7.2	0.21 (0.3%)

10% Yield On MRK Using Covered Calls
Expiration	Strike	Call Bid	Days	Cents/Day	Upside Potential
Sep 5	81.00	2.31	29	8.0	0.21 (0.3%)
Sep 12	81.00	2.60	36	7.2	0.21 (0.3%)

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Top 10 Open Interest For Aug 15 Expiration				Top 5 High Yield
1.	NVDA dividend	6.	GLD dividend	1.	MBX dividend
2.	SLV dividend	7.	TSLA dividend	2.	CAPR dividend
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4.	IWM dividend	9.	INTC dividend	4.	GLBE dividend
5.	IBIT dividend	10.	QQQ dividend	5.	RCAT dividend

Want more examples? MRCY Dividend | MRNA Dividend