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 4:16 PM ET):

Archer-Daniels-Midland Company (ADM)
Bid Ask Last Change Volume P/E Market Cap
59.76 60.40 60.31 -0.21 1.8M 25 29B

ADM Dividend-Like Income Using Covered Calls

With ADM at 60.31, 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% 1.81 0.5
5% 3.02 0.8
10% 6.03 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
Dec 19 62.50 0.55 18 3.1 2.10 (3.5%)
Jan 16 62.50 1.25 46 2.7 2.10 (3.5%)
5% Yield On ADM Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Dec 19 62.50 0.55 18 3.1 2.10 (3.5%)
Jan 16 62.50 1.25 46 2.7 2.10 (3.5%)
10% Yield On ADM Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Dec 19 62.50 0.55 18 3.1 2.10 (3.5%)
Jan 16 62.50 1.25 46 2.7 2.10 (3.5%)

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