CALM Dividend Type Payments
Although CALM has no upcoming (meaning, Board-approved and announced) dividends, you can sell covered calls on Cal-Maine Foods, Inc. 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):
Cal-Maine Foods, Inc. (CALM) | ||||||
---|---|---|---|---|---|---|
Bid | Ask | Last | Change | Volume | P/E | Market Cap |
73.48 | 76.37 | 74.90 | +0.29 | 568K | 13 | 3.7B |
CALM Dividend-Like Income Using Covered Calls
With CALM at 74.90, 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% | 2.25 | 0.6 |
5% | 3.75 | 1.0 |
10% | 7.49 | 2.1 |
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 CALM Using Covered Calls | ||||||
---|---|---|---|---|---|---|
Expiration | Strike | Call Bid | Days | Cents/Day | Upside Potential | |
Nov 15 | 77.50 | 0.95 | 53 | 1.8 | 1.13 (1.5%) | |
Oct 18 | 77.50 | 1.45 | 25 | 5.8 | 1.13 (1.5%) |
5% Yield On CALM Using Covered Calls | ||||||
---|---|---|---|---|---|---|
Expiration | Strike | Call Bid | Days | Cents/Day | Upside Potential | |
Nov 15 | 77.50 | 0.95 | 53 | 1.8 | 1.13 (1.5%) | |
Oct 18 | 77.50 | 1.45 | 25 | 5.8 | 1.13 (1.5%) |
10% Yield On CALM Using Covered Calls | ||||||
---|---|---|---|---|---|---|
Expiration | Strike | Call Bid | Days | Cents/Day | Upside Potential | |
Nov 15 | 80.00 | 1.10 | 53 | 2.1 | 3.63 (4.8%) | |
Oct 18 | 77.50 | 1.45 | 25 | 5.8 | 1.13 (1.5%) |
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Top 10 Open Interest For Oct 18 Expiration | Top 5 High Yield | |||||
---|---|---|---|---|---|---|
1. | NVDA dividend | 6. | SLV dividend | 1. | CPRI dividend | |
2. | IWM dividend | 7. | EEM dividend | 2. | DJT dividend | |
3. | SPY dividend | 8. | TLT dividend | 3. | MBLY dividend | |
4. | QQQ dividend | 9. | GLD dividend | 4. | SMMT dividend | |
5. | HYG dividend | 10. | AAPL dividend | 5. | CLSK dividend |
Want more examples? CAL Dividend | CALX Dividend