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 4:16 PM ET):
Merck & Company, Inc. (new) (MRK) | ||||||
---|---|---|---|---|---|---|
Bid | Ask | Last | Change | Volume | P/E | Market Cap |
114.84 | 114.96 | 114.96 | -0.67 | 9.8M | 22 | 293B |
MRK Dividend-Like Income Using Covered Calls
With MRK at 114.96, 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% | 3.45 | 0.9 |
5% | 5.75 | 1.6 |
10% | 11.50 | 3.1 |
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 | |
Nov 1 | 115.00 | 3.40 | 39 | 8.7 | 0.04 (0.0%) | |
Oct 4 | 115.00 | 1.28 | 11 | 11.6 | 0.04 (0.0%) |
5% Yield On MRK Using Covered Calls | ||||||
---|---|---|---|---|---|---|
Expiration | Strike | Call Bid | Days | Cents/Day | Upside Potential | |
Nov 1 | 115.00 | 3.40 | 39 | 8.7 | 0.04 (0.0%) | |
Oct 4 | 115.00 | 1.28 | 11 | 11.6 | 0.04 (0.0%) |
10% Yield On MRK Using Covered Calls | ||||||
---|---|---|---|---|---|---|
Expiration | Strike | Call Bid | Days | Cents/Day | Upside Potential | |
Nov 1 | 115.00 | 3.40 | 39 | 8.7 | 0.04 (0.0%) | |
Oct 4 | 115.00 | 1.28 | 11 | 11.6 | 0.04 (0.0%) |
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Top 10 Open Interest For Oct 18 Expiration | Top 5 High Yield | |||||
---|---|---|---|---|---|---|
1. | NVDA dividend | 6. | SLV dividend | 1. | CPRI dividend | |
2. | IWM dividend | 7. | EEM dividend | 2. | DJT dividend | |
3. | SPY dividend | 8. | TLT dividend | 3. | MBLY dividend | |
4. | QQQ dividend | 9. | GLD dividend | 4. | SMMT dividend | |
5. | HYG dividend | 10. | AAPL dividend | 5. | CLSK dividend |
Want more examples? MRIN Dividend | MRNA Dividend