ADC Dividend
Although ADC has a dividend of 0.26 with an ex-dividend date of Jun 30, you can sell covered calls on Agree Realty Corporation to create 12 extra dividend type payments per year to boost its yield. Let's look at some recent prices (last updated Wed 4:16 PM ET):
| Agree Realty Corporation (ADC) | ||||||
|---|---|---|---|---|---|---|
| Bid | Ask | Last | Change | Volume | P/E | Market Cap |
| 75.39 | 76.35 | 75.31 | +0.66 | 1.1M | 42 | 8.2B |
ADC Dividend-Like Income Using Covered Calls
With ADC at 75.31, 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% | 2.26 | 0.6 |
| 5% | 3.77 | 1.0 |
| 10% | 7.53 | 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 ADC Using Covered Calls | ||||||
|---|---|---|---|---|---|---|
| Expiration | Strike | Call Bid | Days | Cents/Day | Upside Potential | |
| Jan 16 | 80.00 | 2.05 | 213 | 1.0 | 3.65 (4.8%) | |
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| Top 10 Open Interest For Jun 20 Expiration | Top 5 High Yield | |||||
|---|---|---|---|---|---|---|
| 1. | NVDA dividend | 6. | IWM dividend | 1. | ALT dividend | |
| 2. | SPY dividend | 7. | GLD dividend | 2. | RUN dividend | |
| 3. | QQQ dividend | 8. | TLT dividend | 3. | CAPR dividend | |
| 4. | TSLA dividend | 9. | AAPL dividend | 4. | SWBI dividend | |
| 5. | SLV dividend | 10. | INTC dividend | 5. | QUBT dividend | |
Want more examples? ADBE Dividend | ADCT Dividend
