MCK Dividend Type Payments

McKesson Corporation dividend

Although MCK has no upcoming (meaning, Board-approved and announced) dividends, you can sell covered calls on McKesson Corporation 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):

McKesson Corporation (MCK)
Bid Ask Last Change Volume P/E Market Cap
573.00 603.84 592.57 -2.62 686K 31 76B

MCK Dividend-Like Income Using Covered Calls

With MCK at 592.57, 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% 17.78 4.9
5% 29.63 8.1
10% 59.26 16.2

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 MCK Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Feb 7 605.00 12.90 22 58.6 1.16 (0.2%)
Feb 14 605.00 13.30 29 45.9 1.16 (0.2%)
5% Yield On MCK Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Feb 7 605.00 12.90 22 58.6 1.16 (0.2%)
Feb 14 605.00 13.30 29 45.9 1.16 (0.2%)
10% Yield On MCK Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Feb 7 605.00 12.90 22 58.6 1.16 (0.2%)
Feb 14 605.00 13.30 29 45.9 1.16 (0.2%)

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