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 Tue 1:40 PM ET):

Archer-Daniels-Midland Company (ADM)
Bid Ask Last Change Volume P/E Market Cap
48.40 48.42 48.41 +0.47 707K 17 23B

ADM Dividend-Like Income Using Covered Calls

With ADM at 48.41, 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% 1.45 0.4
5% 2.42 0.7
10% 4.84 1.3

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
Jul 3 49.00 1.30 38 3.4 0.58 (1.2%)
Jun 6 48.50 0.75 11 6.8 0.08 (0.2%)
5% Yield On ADM Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Jul 3 49.00 1.30 38 3.4 0.58 (1.2%)
Jun 6 48.50 0.75 11 6.8 0.08 (0.2%)
10% Yield On ADM Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Jul 3 49.00 1.30 38 3.4 0.58 (1.2%)
Jun 6 48.50 0.75 11 6.8 0.08 (0.2%)

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