ADUS Dividend Type Payments

Although ADUS has no upcoming (meaning, Board-approved and announced) dividends, you can sell covered calls on ADDUS HOMECARE to create 12 extra dividend type payments per year to boost its yield. Let's look at some recent prices (last updated Tue 2:50 PM ET):

ADDUS HOMECARE (ADUS)
Bid Ask Last Change Volume P/E Market Cap
62.07 62.29 62.07 -0.49 70K 46 0.8B

ADUS Dividend-Like Income Using Covered Calls

With ADUS at 62.07, 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% 1.86 0.5
5% 3.10 0.9
10% 6.21 1.7

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 ADUS Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Nov 16 70.00 0.15 25 0.6 7.71 (12.4%)
Dec 21 65.00 1.80 60 3.0 2.71 (4.4%)
5% Yield On ADUS Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Nov 16 65.00 0.65 25 2.6 2.71 (4.4%)
Dec 21 65.00 1.80 60 3.0 2.71 (4.4%)
10% Yield On ADUS Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Nov 16 65.00 0.65 25 2.6 2.71 (4.4%)
Dec 21 65.00 1.80 60 3.0 2.71 (4.4%)

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

 
Top 10 Open Interest For Nov 16 Expiration     Top 5 High Yield
1.SPY dividend 6.QQQ dividend   1.SNAP dividend
2.EWZ dividend 7.IWM dividend   2.AMD dividend
3.EEM dividend 8.FXI dividend   3.TWTR dividend
4.PBR dividend 9.VXX dividend   4.TSLA dividend
5.SPX dividend 10.BAC dividend   5.UVXY dividend

Want more examples? ADTN Dividend | ADVM Dividend