MDLZ Dividend
Although MDLZ has a dividend of 0.47 with an ex-dividend date of Mar 31, you can sell covered calls on Mondelez International, 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):
| Mondelez International, Inc. - Class A (MDLZ) | ||||||
|---|---|---|---|---|---|---|
| Bid | Ask | Last | Change | Volume | P/E | Market Cap |
| 64.08 | 64.66 | 64.67 | +2.50 | 16.0M | 18 | 80B |
MDLZ Dividend-Like Income Using Covered Calls
With MDLZ at 64.67, 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% | 1.94 | 0.5 |
| 5% | 3.23 | 0.9 |
| 10% | 6.47 | 1.8 |
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 MDLZ Using Covered Calls | ||||||
|---|---|---|---|---|---|---|
| Expiration | Strike | Call Bid | Days | Cents/Day | Upside Potential | |
| Mar 7 | 65.00 | 0.65 | 15 | 4.3 | 0.34 (0.5%) | |
| Mar 14 | 65.00 | 0.65 | 22 | 3.0 | 0.34 (0.5%) | |
| 5% Yield On MDLZ Using Covered Calls | ||||||
|---|---|---|---|---|---|---|
| Expiration | Strike | Call Bid | Days | Cents/Day | Upside Potential | |
| Mar 7 | 65.00 | 0.65 | 15 | 4.3 | 0.34 (0.5%) | |
| Mar 14 | 65.00 | 0.65 | 22 | 3.0 | 0.34 (0.5%) | |
| 10% Yield On MDLZ Using Covered Calls | ||||||
|---|---|---|---|---|---|---|
| Expiration | Strike | Call Bid | Days | Cents/Day | Upside Potential | |
| Mar 7 | 65.00 | 0.65 | 15 | 4.3 | 0.34 (0.5%) | |
| Mar 14 | 65.00 | 0.65 | 22 | 3.0 | 0.34 (0.5%) | |
Want to increase dividends with covered calls? Sign Up For A Free Trial
| Top 10 Open Interest For Mar 21 Expiration | Top 5 High Yield | |||||
|---|---|---|---|---|---|---|
| 1. | NVDA dividend | 6. | KWEB dividend | 1. | LUNR dividend | |
| 2. | FXI dividend | 7. | INTC dividend | 2. | HIMS dividend | |
| 3. | SPY dividend | 8. | SLV dividend | 3. | RGTI dividend | |
| 4. | EEM dividend | 9. | QQQ dividend | 4. | SOUN dividend | |
| 5. | IWM dividend | 10. | HYG dividend | 5. | WOLF dividend | |
Want more examples? MDIV Dividend | MDT Dividend
