CL Dividend Type Payments

Colgate-Palmolive Company dividend

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 Tue 4:16 PM ET):

Colgate-Palmolive Company (CL)
Bid Ask Last Change Volume P/E Market Cap
93.00 94.43 93.61 -1.01 4.8M 27 77B

CL Dividend-Like Income Using Covered Calls

With CL at 93.61, 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% 2.81 0.8
5% 4.68 1.3
10% 9.36 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
Dec 6 95.00 0.20 18 1.1 0.57 (0.6%)
Dec 13 97.00 0.40 25 1.6 2.57 (2.7%)
5% Yield On CL Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Dec 6 96.00 0.50 18 2.8 1.57 (1.7%)
Dec 13 97.00 0.40 25 1.6 2.57 (2.7%)
10% Yield On CL Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Dec 6 96.00 0.50 18 2.8 1.57 (1.7%)
Dec 20 94.00 1.90 32 4.6 0.00 (0.0%)

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Want more examples? CIVI Dividend | CLAR Dividend