ADM Dividend Type Payments

Archer-Daniels-Midland Company dividend

Although ADM has no upcoming (meaning, Board-approved and announced) dividends, you can sell covered calls on Archer-Daniels-Midland Company to create 12 extra dividend type payments per year to boost its yield. Let's look at some recent prices (last updated Wed 4:16 PM ET):

Archer-Daniels-Midland Company (ADM)
Bid Ask Last Change Volume P/E Market Cap
60.00 61.58 61.41 -0.78 3.6M 27 30B

ADM Dividend-Like Income Using Covered Calls

With ADM at 61.41, 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% 1.84 0.5
5% 3.07 0.8
10% 6.14 1.7

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 ADM Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Oct 3 62.00 1.35 24 5.6 0.42 (0.7%)
Oct 10 62.00 1.50 31 4.8 0.42 (0.7%)
5% Yield On ADM Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Oct 3 62.00 1.35 24 5.6 0.42 (0.7%)
Oct 10 62.00 1.50 31 4.8 0.42 (0.7%)
10% Yield On ADM Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Oct 3 62.00 1.35 24 5.6 0.42 (0.7%)
Oct 10 62.00 1.50 31 4.8 0.42 (0.7%)

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