CME Dividend Type Payments
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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Top 10 Open Interest For Apr 17 Expiration | Top 5 High Yield | |||||
---|---|---|---|---|---|---|
1. | NVDA dividend | 6. | IWM dividend | 1. | OKLO dividend | |
2. | SPY dividend | 7. | NIO dividend | 2. | RKLB dividend | |
3. | SLV dividend | 8. | EEM dividend | 3. | CORZ dividend | |
4. | ASHR dividend | 9. | TLT dividend | 4. | RCAT dividend | |
5. | QQQ dividend | 10. | TSLA dividend | 5. | JBLU dividend |
Want more examples? CMDY Dividend | CMF Dividend