CME Dividend Type Payments

CME Group Inc. - Class A dividend

Although CME has no upcoming (meaning, Board-approved and announced) dividends, you can sell covered calls on CME Group 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 Wed 11:40 AM ET):

CME Group Inc. - Class A (CME)
Bid Ask Last Change Volume P/E Market Cap
264.42 264.62 264.52 +2.28 567K 28 95B

CME Dividend-Like Income Using Covered Calls

With CME at 264.52, 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% 7.94 2.2
5% 13.23 3.6
10% 26.45 7.2

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 CME Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
May 16 270.00 5.50 45 12.2 5.38 (2.0%)
Apr 17 270.00 1.85 16 11.6 5.38 (2.0%)
5% Yield On CME Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
May 16 270.00 5.50 45 12.2 5.38 (2.0%)
Apr 17 270.00 1.85 16 11.6 5.38 (2.0%)
10% Yield On CME Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
May 16 270.00 5.50 45 12.2 5.38 (2.0%)
Apr 17 270.00 1.85 16 11.6 5.38 (2.0%)

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Want more examples? CMDY Dividend | CMF Dividend