CMG Dividend Type Payments

Chipotle Mexican Grill, Inc. dividend

Although CMG has no upcoming (meaning, Board-approved and announced) dividends, you can sell covered calls on Chipotle Mexican Grill, Inc. 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):

Chipotle Mexican Grill, Inc. (CMG)
Bid Ask Last Change Volume P/E Market Cap
58.63 58.92 58.63 -1.28 6.7M 56 82B

CMG Dividend-Like Income Using Covered Calls

With CMG at 58.63, 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% 1.76 0.5
5% 2.93 0.8
10% 5.86 1.6

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 CMG Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Dec 6 59.00 1.30 22 5.9 0.08 (0.1%)
Dec 13 59.00 1.60 29 5.5 0.08 (0.1%)
5% Yield On CMG Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Dec 6 59.00 1.30 22 5.9 0.08 (0.1%)
Dec 13 59.00 1.60 29 5.5 0.08 (0.1%)
10% Yield On CMG Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Dec 6 59.00 1.30 22 5.9 0.08 (0.1%)
Dec 13 59.00 1.60 29 5.5 0.08 (0.1%)

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Want more examples? CMF Dividend | CMI Dividend