XOM Dividend Type Payments

Exxon Mobil Corporation dividend

Although XOM has no upcoming (meaning, Board-approved and announced) dividends, you can sell covered calls on Exxon Mobil Corporation to create 12 extra dividend type payments per year to boost its yield. Let's look at some recent prices (last updated Wed 10:00 AM ET):

Exxon Mobil Corporation (XOM)
Bid Ask Last Change Volume P/E Market Cap
107.90 107.92 107.91 -0.10 1.6M 14 475B

XOM Dividend-Like Income Using Covered Calls

With XOM at 107.91, 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% 3.24 0.9
5% 5.40 1.5
10% 10.79 3.0

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 XOM Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Dec 20 108.00 0.87 3 29.0 0.08 (0.1%)
Dec 27 108.00 1.49 10 14.9 0.08 (0.1%)
5% Yield On XOM Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Dec 20 108.00 0.87 3 29.0 0.08 (0.1%)
Dec 27 108.00 1.49 10 14.9 0.08 (0.1%)
10% Yield On XOM Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Dec 20 108.00 0.87 3 29.0 0.08 (0.1%)
Dec 27 108.00 1.49 10 14.9 0.08 (0.1%)

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Top 10 Open Interest For Dec 20 Expiration     Top 5 High Yield
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Want more examples? XNTK Dividend | XOMA Dividend