ADM Dividend Type Payments

ARCHER-DANIELS MIDLAND dividend

Although ADM has no upcoming (meaning, Board-approved and announced) dividends, you can sell covered calls on ARCHER-DANIELS MIDLAND to create 12 extra dividend type payments per year to boost its yield. Let's look at some recent prices (last updated Mon 4:16 PM ET):

ARCHER-DANIELS MIDLAND (ADM)
Bid Ask Last Change Volume P/E Market Cap
49.00 50.62 49.62 -0.70 2.4M 15 28B

ADM Dividend-Like Income Using Covered Calls

With ADM at 49.62, here's a table showing how big the annual "dividend" (ie. 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% 1.49 0.4
5% 2.48 0.7
10% 4.96 1.4

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
Oct 5 51.00 0.09 12 0.8 0.38 (0.8%)
Oct 12 51.00 0.17 19 0.9 0.38 (0.8%)
5% Yield On ADM Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Oct 5 51.00 0.09 12 0.8 0.38 (0.8%)
Oct 12 51.00 0.17 19 0.9 0.38 (0.8%)

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Want more examples? ADI Dividend | ADMP Dividend