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 Thu 4:16 PM ET):

McKesson Corporation (MCK)
Bid Ask Last Change Volume P/E Market Cap
560.30 603.75 579.22 +8.24 1.1M 30 73B

MCK Dividend-Like Income Using Covered Calls

With MCK at 579.22, 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% 17.38 4.8
5% 28.96 7.9
10% 57.92 15.9

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
Jan 10 605.00 3.10 23 13.5 1.25 (0.2%)
Aug 15 610.00 40.00 240 16.7 6.25 (1.1%)
5% Yield On MCK Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Jan 10 605.00 3.10 23 13.5 1.25 (0.2%)
Aug 15 610.00 40.00 240 16.7 6.25 (1.1%)
10% Yield On MCK Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Aug 15 610.00 40.00 240 16.7 6.25 (1.1%)
May 16 610.00 28.00 149 18.8 6.25 (1.1%)

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