ADM Dividend

Although ADM has a dividend of 0.52 with an ex-dividend date of Feb 17, 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 Fri 4:16 PM ET):

Archer-Daniels-Midland Company (ADM)
Bid	Ask	Last	Change	Volume	P/E	Market Cap
65.56	66.54	66.33	+0.90	2.8M	27	31B

ADM Dividend-Like Income Using Covered Calls

With ADM at 66.33, 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%	1.99	0.5
5%	3.32	0.9
10%	6.63	1.8

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
Feb 20	67.50	0.65	15	4.3	0.96 (1.4%)
Mar 20	67.50	1.65	43	3.8	0.96 (1.4%)

5% Yield On ADM Using Covered Calls
Expiration	Strike	Call Bid	Days	Cents/Day	Upside Potential
Feb 20	67.50	0.65	15	4.3	0.96 (1.4%)
Mar 20	67.50	1.65	43	3.8	0.96 (1.4%)

10% Yield On ADM Using Covered Calls
Expiration	Strike	Call Bid	Days	Cents/Day	Upside Potential
Feb 20	67.50	0.65	15	4.3	0.96 (1.4%)
Mar 20	67.50	1.65	43	3.8	0.96 (1.4%)

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Top 10 Open Interest For Feb 20 Expiration				Top 5 High Yield
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5.	GLD dividend	10.	INTC dividend	5.	QS dividend

Want more examples? ADI Dividend | ADMA Dividend