ADM Dividend

Although ADM has a dividend of 0.51 with an ex-dividend date of Aug 20, 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 Thu 4:16 PM ET):

Archer-Daniels-Midland Company (ADM)
Bid	Ask	Last	Change	Volume	P/E	Market Cap
57.33	58.14	57.86	+1.13	3.9M	25	27B

ADM Dividend-Like Income Using Covered Calls

With ADM at 57.86, 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%	1.74	0.5
5%	2.89	0.8
10%	5.79	1.6

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
Sep 5	58.00	1.30	30	3.9	0.00 (0.0%)
Sep 12	58.00	1.45	37	3.5	0.00 (0.0%)

5% Yield On ADM Using Covered Calls
Expiration	Strike	Call Bid	Days	Cents/Day	Upside Potential
Sep 5	58.00	1.30	30	3.9	0.00 (0.0%)
Sep 12	58.00	1.45	37	3.5	0.00 (0.0%)

10% Yield On ADM Using Covered Calls
Expiration	Strike	Call Bid	Days	Cents/Day	Upside Potential
Sep 5	58.00	1.30	30	3.9	0.00 (0.0%)
Sep 12	58.00	1.45	37	3.5	0.00 (0.0%)

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Want more examples? ADI Dividend | ADMA Dividend