IMO Dividend

Imperial Oil Limited dividend

Although IMO has a dividend of 0.64 with an ex-dividend date of Mar 5, you can sell covered calls on Imperial Oil Limited to create 12 extra dividend type payments per year to boost its yield. Let's look at some recent prices (last updated Wed 11:50 AM ET):

Imperial Oil Limited (IMO)
Bid Ask Last Change Volume P/E Market Cap
118.50 118.63 118.59 +4.01 177K 20 117B

IMO Dividend-Like Income Using Covered Calls

With IMO at 118.59, 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% 3.56 1.0
5% 5.93 1.6
10% 11.86 3.2

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 IMO Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Feb 20 120.00 1.35 10 13.5 1.37 (1.2%)
Mar 20 120.00 3.70 38 9.7 1.37 (1.2%)
5% Yield On IMO Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Feb 20 120.00 1.35 10 13.5 1.37 (1.2%)
Mar 20 120.00 3.70 38 9.7 1.37 (1.2%)
10% Yield On IMO Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Feb 20 120.00 1.35 10 13.5 1.37 (1.2%)
Mar 20 120.00 3.70 38 9.7 1.37 (1.2%)

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Want more examples? IMMR Dividend | IMOS Dividend