CL Dividend Type Payments
Although CL has no upcoming (meaning, Board-approved and announced) dividends, you can sell covered calls on Colgate-Palmolive Company to create 12 extra dividend type payments per year to boost its yield. Let's look at some recent prices (last updated Mon 4:16 PM ET):
| Colgate-Palmolive Company (CL) | ||||||
|---|---|---|---|---|---|---|
| Bid | Ask | Last | Change | Volume | P/E | Market Cap |
| 93.37 | 94.45 | 94.16 | -0.25 | 5.4M | 26 | 76B |
CL Dividend-Like Income Using Covered Calls
With CL at 94.16, 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% | 2.82 | 0.8 |
| 5% | 4.71 | 1.3 |
| 10% | 9.42 | 2.6 |
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 CL Using Covered Calls | ||||||
|---|---|---|---|---|---|---|
| Expiration | Strike | Call Bid | Days | Cents/Day | Upside Potential | |
| Feb 13 | 94.00 | 0.80 | 5 | 7.0 | 0.00 (0.0%) | |
| Feb 20 | 94.00 | 1.15 | 12 | 5.8 | 0.00 (0.0%) | |
| 5% Yield On CL Using Covered Calls | ||||||
|---|---|---|---|---|---|---|
| Expiration | Strike | Call Bid | Days | Cents/Day | Upside Potential | |
| Feb 13 | 94.00 | 0.80 | 5 | 7.0 | 0.00 (0.0%) | |
| Feb 20 | 94.00 | 1.15 | 12 | 5.8 | 0.00 (0.0%) | |
| 10% Yield On CL Using Covered Calls | ||||||
|---|---|---|---|---|---|---|
| Expiration | Strike | Call Bid | Days | Cents/Day | Upside Potential | |
| Feb 13 | 94.00 | 0.80 | 5 | 7.0 | 0.00 (0.0%) | |
| Feb 20 | 94.00 | 1.15 | 12 | 5.8 | 0.00 (0.0%) | |
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| Top 10 Open Interest For Feb 20 Expiration | Top 5 High Yield | |||||
|---|---|---|---|---|---|---|
| 1. | SLV dividend | 6. | QQQ dividend | 1. | OCUL dividend | |
| 2. | NVDA dividend | 7. | SPY dividend | 2. | UPWK dividend | |
| 3. | KWEB dividend | 8. | EWZ dividend | 3. | PINS dividend | |
| 4. | IBIT dividend | 9. | TLT dividend | 4. | NET dividend | |
| 5. | GLD dividend | 10. | CORZ dividend | 5. | APLD dividend | |
Want more examples? CIVB Dividend | CLAR Dividend
