MDLZ Dividend
Although MDLZ has a dividend of 0.47 with an ex-dividend date of Jun 30, you can sell covered calls on Mondelez International, Inc. - Class A to create 12 extra dividend type payments per year to boost its yield. Let's look at some recent prices (last updated Fri 4:16 PM ET):
| Mondelez International, Inc. - Class A (MDLZ) | ||||||
|---|---|---|---|---|---|---|
| Bid | Ask | Last | Change | Volume | P/E | Market Cap |
| 66.06 | 66.43 | 66.15 | -0.22 | 6.1M | 25 | 86B |
MDLZ Dividend-Like Income Using Covered Calls
With MDLZ at 66.15, 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% | 1.98 | 0.5 |
| 5% | 3.31 | 0.9 |
| 10% | 6.62 | 1.8 |
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 MDLZ Using Covered Calls | ||||||
|---|---|---|---|---|---|---|
| Expiration | Strike | Call Bid | Days | Cents/Day | Upside Potential | |
| Jul 3 | 69.00 | 0.25 | 28 | 0.9 | 2.57 (3.9%) | |
| Jul 11 | 67.00 | 0.30 | 36 | 0.8 | 0.57 (0.9%) | |
| 5% Yield On MDLZ Using Covered Calls | ||||||
|---|---|---|---|---|---|---|
| Expiration | Strike | Call Bid | Days | Cents/Day | Upside Potential | |
| Jul 11 | 68.00 | 0.65 | 36 | 1.8 | 1.57 (2.4%) | |
| Jun 13 | 67.00 | 0.30 | 8 | 3.8 | 0.57 (0.9%) | |
| 10% Yield On MDLZ Using Covered Calls | ||||||
|---|---|---|---|---|---|---|
| Expiration | Strike | Call Bid | Days | Cents/Day | Upside Potential | |
| Jun 13 | 67.00 | 0.30 | 8 | 3.8 | 0.57 (0.9%) | |
| Jul 18 | 67.50 | 1.10 | 43 | 2.6 | 1.07 (1.6%) | |
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| Top 10 Open Interest For Jun 20 Expiration | Top 5 High Yield | |||||
|---|---|---|---|---|---|---|
| 1. | NVDA dividend | 6. | IWM dividend | 1. | APP dividend | |
| 2. | SPY dividend | 7. | EEM dividend | 2. | APLD dividend | |
| 3. | SLV dividend | 8. | TSLA dividend | 3. | SFIX dividend | |
| 4. | QQQ dividend | 9. | FXI dividend | 4. | ALT dividend | |
| 5. | GLD dividend | 10. | TLT dividend | 5. | SERV dividend | |
Want more examples? MDIV Dividend | MDT Dividend
