ADP Dividend

Although ADP has a dividend of 1.54 with an ex-dividend date of Sep 12, you can sell covered calls on Automatic Data Processing, Inc. to create 12 extra dividend type payments per year to boost its yield. Let's look at some recent prices (last updated Fri 2:00 PM ET):

Automatic Data Processing, Inc. (ADP)
Bid	Ask	Last	Change	Volume	P/E	Market Cap
305.13	305.29	305.25	+1.76	383K	31	123B

ADP Dividend-Like Income Using Covered Calls

With ADP at 305.25, 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%	9.16	2.5
5%	15.26	4.2
10%	30.53	8.4

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 ADP Using Covered Calls
Expiration	Strike	Call Bid	Days	Cents/Day	Upside Potential
Sep 5	305.00	6.00	29	19.7	0.00 (0.0%)
Sep 12	305.00	6.00	36	15.9	0.00 (0.0%)

5% Yield On ADP Using Covered Calls
Expiration	Strike	Call Bid	Days	Cents/Day	Upside Potential
Sep 5	305.00	6.00	29	19.7	0.00 (0.0%)
Sep 12	305.00	6.00	36	15.9	0.00 (0.0%)

10% Yield On ADP Using Covered Calls
Expiration	Strike	Call Bid	Days	Cents/Day	Upside Potential
Sep 5	305.00	6.00	29	19.7	0.00 (0.0%)
Sep 12	305.00	6.00	36	15.9	0.00 (0.0%)

Want to increase dividends with covered calls? Sign Up For A Free Trial

Top 10 Open Interest For Aug 15 Expiration				Top 5 High Yield
1.	NVDA dividend	6.	GLD dividend	1.	MBX dividend
2.	SLV dividend	7.	TSLA dividend	2.	CAPR dividend
3.	SPY dividend	8.	AMZN dividend	3.	SPRY dividend
4.	IWM dividend	9.	INTC dividend	4.	GLBE dividend
5.	IBIT dividend	10.	QQQ dividend	5.	AKRO dividend

Want more examples? ADNT Dividend | ADPT Dividend