7 Best Choices for Dividend-Capture

BY Robert Weinstein | 05/15/12 - 07:53 AM EDT

Stock quotes in this article: GCI, RAI, HRB, PEG, WM, KMB, CNK

Comment

Find out if (GCI) is in Cramer's Portfolio.

Kimberly Clark (KMB )

Kimberly-Clark, together with its subsidiaries, engages in manufacturing and marketing health care products.
Yield: 3.73%
Dividend Amount: $0.74
Ex-Dividend Date: June 06, 2012
Beta: 0.32

Strategy: Buy Kimberly Clark stock and offer to sell the June $77.50 strike or lower call for 46 cents over the intrinsic value. After qualifying for the dividend, I will attempt to close out the trade with a gain of near 24 cents, plus the dividend earned.

Most likely my shares are called away the day before trading ex-dividend (resulting from the option buyer wanting the dividend), and I gain about 46 cents. The most I can make is $1.20 if I hold the covered call through option expiration day and the stock gets called away.

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