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 Fri 4:16 PM ET):

CME Group Inc. - Class A (CME)
Bid Ask Last Change Volume P/E Market Cap
230.29 234.75 232.71 +0.40 1.8M 24 84B

CME Dividend-Like Income Using Covered Calls

With CME at 232.71, 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% 6.98 1.9
5% 11.64 3.2
10% 23.27 6.4

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
Apr 17 240.00 5.30 91 5.8 5.25 (2.3%)
Sep 19 240.00 11.50 246 4.7 5.25 (2.3%)
5% Yield On CME Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Apr 17 240.00 5.30 91 5.8 5.25 (2.3%)
Sep 19 240.00 11.50 246 4.7 5.25 (2.3%)
10% Yield On CME Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Feb 21 240.00 2.35 36 6.5 5.25 (2.3%)

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Want more examples? CMDY Dividend | CMF Dividend