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 Thu 4:16 PM ET):

Colgate-Palmolive Company (CL)
Bid Ask Last Change Volume P/E Market Cap
92.08 96.73 95.50 +2.53 7.0M 27 76B

CL Dividend-Like Income Using Covered Calls

With CL at 95.50, 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% 2.87 0.8
5% 4.78 1.3
10% 9.55 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
May 2 101.00 0.25 16 1.6 4.27 (4.5%)
May 9 100.00 0.60 23 2.6 3.27 (3.4%)
5% Yield On CL Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
May 2 101.00 0.25 16 1.6 4.27 (4.5%)
May 9 100.00 0.60 23 2.6 3.27 (3.4%)
10% Yield On CL Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
May 2 97.00 1.40 16 8.8 0.27 (0.3%)
May 9 97.00 1.10 23 4.8 0.27 (0.3%)

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