ADM Dividend Type Payments

Archer-Daniels Midland CP dividend

Although ADM has no upcoming (meaning, Board-approved and announced) dividends, you can sell covered calls on Archer-Daniels Midland CP to create 12 extra dividend type payments per year to boost its yield. Let's look at some recent prices (last updated Fri 3:35 PM ET):

Archer-Daniels Midland CP (ADM)
Bid Ask Last Change Volume P/E Market Cap
41.92 41.93 41.92 +0.04 2.5M 11 24B

ADM Dividend-Like Income Using Covered Calls

With ADM at 41.92, 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% 1.26 0.3
5% 2.10 0.6
10% 4.19 1.1

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 ADM Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Feb 22 43.00 0.03 8 0.4 1.07 (2.6%)
Mar 1 43.00 0.14 15 0.9 1.07 (2.6%)
5% Yield On ADM Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Feb 22 42.50 0.11 8 1.4 0.57 (1.4%)
Mar 1 43.00 0.14 15 0.9 1.07 (2.6%)
10% Yield On ADM Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Feb 22 42.50 0.11 8 1.4 0.57 (1.4%)
Mar 1 42.00 0.46 15 3.1 0.07 (0.2%)

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Want more examples? ADI Dividend | ADMP Dividend