MRK Dividend Type Payments

Although MRK has no upcoming (meaning, Board-approved and announced) dividends, 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 Tue 10:10 AM ET):

Merck & Company, Inc. (new) (MRK)
Bid	Ask	Last	Change	Volume	P/E	Market Cap
96.12	96.17	96.14	+3.29	6.7M	12	231B

MRK Dividend-Like Income Using Covered Calls

With MRK at 96.14, 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%	2.88	0.8
5%	4.81	1.3
10%	9.61	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 MRK Using Covered Calls
Expiration	Strike	Call Bid	Days	Cents/Day	Upside Potential
Dec 5	100.00	1.13	18	6.3	3.83 (4.0%)
Dec 12	100.00	1.40	25	5.6	3.83 (4.0%)

5% Yield On MRK Using Covered Calls
Expiration	Strike	Call Bid	Days	Cents/Day	Upside Potential
Dec 5	100.00	1.13	18	6.3	3.83 (4.0%)
Dec 12	100.00	1.40	25	5.6	3.83 (4.0%)

10% Yield On MRK Using Covered Calls
Expiration	Strike	Call Bid	Days	Cents/Day	Upside Potential
Dec 5	100.00	1.13	18	6.3	3.83 (4.0%)
Dec 12	100.00	1.40	25	5.6	3.83 (4.0%)

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Want more examples? MRCY Dividend | MRNA Dividend