CME Dividend

CME Group Inc. - Class A dividend

Although CME has a dividend of 1.15 with an ex-dividend date of Dec 9, 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
220.00 228.13 225.28 +1.86 1.9M 24 81B

CME Dividend-Like Income Using Covered Calls

With CME at 225.28, 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% 6.76 1.9
5% 11.26 3.1
10% 22.53 6.2

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
Dec 20 230.00 2.45 36 6.8 1.87 (0.8%)
Jan 17 230.00 3.40 64 5.3 1.87 (0.8%)
5% Yield On CME Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Dec 20 230.00 2.45 36 6.8 1.87 (0.8%)
Jan 17 230.00 3.40 64 5.3 1.87 (0.8%)
10% Yield On CME Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Dec 20 230.00 2.45 36 6.8 1.87 (0.8%)

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Top 10 Open Interest For Dec 20 Expiration     Top 5 High Yield
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Want more examples? CMDY Dividend | CMF Dividend