ADP Dividend Type Payments

Automatic Data Processing, Inc dividend

Although ADP has no upcoming (meaning, Board-approved and announced) dividends, 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 12:15 PM ET):

Automatic Data Processing, Inc (ADP)
Bid Ask Last Change Volume P/E Market Cap
167.79 167.85 167.84 +0.07 460K 38 73B

ADP Dividend-Like Income Using Covered Calls

With ADP at 167.84, 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% 5.04 1.4
5% 8.39 2.3
10% 16.78 4.6

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 ADP Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Jul 26 170.00 0.50 8 6.3 2.15 (1.3%)
Aug 2 177.50 0.45 15 3.0 9.65 (5.7%)
5% Yield On ADP Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Jul 26 170.00 0.50 8 6.3 2.15 (1.3%)
Aug 2 177.50 0.45 15 3.0 9.65 (5.7%)
10% Yield On ADP Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Jul 26 170.00 0.50 8 6.3 2.15 (1.3%)
Aug 2 175.00 0.85 15 5.7 7.15 (4.3%)

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Top 10 Open Interest For Aug 16 Expiration     Top 5 High Yield
1.SPY dividend 6.QQQ dividend   1.SNAP dividend
2.FXI dividend 7.NIO dividend   2.ITCI dividend
3.EEM dividend 8.BAC dividend   3.PCG dividend
4.SPX dividend 9.GLD dividend   4.TWTR dividend
5.GDX dividend 10.EWZ dividend   5.BYND dividend

Want more examples? ADNT Dividend | ADPT Dividend