MMC Dividend Type Payments

Marsh & McLennan Companies, Inc. dividend

Although MMC has no upcoming (meaning, Board-approved and announced) dividends, you can sell covered calls on Marsh & McLennan Companies, Inc. to create 12 extra dividend type payments per year to boost its yield. Let's look at some recent prices (last updated Mon 11:10 AM ET):

Marsh & McLennan Companies, Inc. (MMC)
Bid Ask Last Change Volume P/E Market Cap
223.65 223.77 223.63 +1.49 377K 27 109B

MMC Dividend-Like Income Using Covered Calls

With MMC at 223.63, 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% 6.71 1.8
5% 11.18 3.1
10% 22.36 6.1

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 MMC Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Dec 20 230.00 2.05 33 6.2 6.23 (2.8%)
Jan 17 230.00 3.60 61 5.9 6.23 (2.8%)
5% Yield On MMC Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Dec 20 230.00 2.05 33 6.2 6.23 (2.8%)
Jan 17 230.00 3.60 61 5.9 6.23 (2.8%)
10% Yield On MMC Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Dec 20 230.00 2.05 33 6.2 6.23 (2.8%)

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Want more examples? MLR Dividend | MMI Dividend