ADM Dividend Type Payments
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 Mon 12:55 PM ET):
| Archer-Daniels-Midland Company (ADM) | ||||||
|---|---|---|---|---|---|---|
| Bid | Ask | Last | Change | Volume | P/E | Market Cap |
| 54.67 | 54.71 | 54.70 | -0.62 | 899K | 20 | 27B |
ADM Dividend-Like Income Using Covered Calls
With ADM at 54.70, 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% | 1.64 | 0.4 |
| 5% | 2.74 | 0.7 |
| 10% | 5.47 | 1.5 |
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 | |
| Aug 1 | 55.00 | 1.40 | 26 | 5.4 | 0.29 (0.5%) | |
| Aug 8 | 55.00 | 1.80 | 33 | 5.5 | 0.29 (0.5%) | |
| 5% Yield On ADM Using Covered Calls | ||||||
|---|---|---|---|---|---|---|
| Expiration | Strike | Call Bid | Days | Cents/Day | Upside Potential | |
| Aug 1 | 55.00 | 1.40 | 26 | 5.4 | 0.29 (0.5%) | |
| Aug 8 | 55.00 | 1.80 | 33 | 5.5 | 0.29 (0.5%) | |
| 10% Yield On ADM Using Covered Calls | ||||||
|---|---|---|---|---|---|---|
| Expiration | Strike | Call Bid | Days | Cents/Day | Upside Potential | |
| Aug 1 | 55.00 | 1.40 | 26 | 5.4 | 0.29 (0.5%) | |
| Aug 8 | 55.00 | 1.80 | 33 | 5.5 | 0.29 (0.5%) | |
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| Top 10 Open Interest For Jul 18 Expiration | Top 5 High Yield | |||||
|---|---|---|---|---|---|---|
| 1. | NVDA dividend | 6. | GLD dividend | 1. | TMC dividend | |
| 2. | SLV dividend | 7. | AAPL dividend | 2. | CELC dividend | |
| 3. | SPY dividend | 8. | TLT dividend | 3. | DAL dividend | |
| 4. | TSLA dividend | 9. | IBIT dividend | 4. | ALT dividend | |
| 5. | IWM dividend | 10. | QQQ dividend | 5. | ENPH dividend | |
Want more examples? ADI Dividend | ADMA Dividend
