ADUS Dividend Type Payments

Although ADUS has no upcoming (meaning, Board-approved and announced) dividends, you can sell covered calls on Addus HomeCare Corp to create 12 extra dividend type payments per year to boost its yield. Let's look at some recent prices (last updated Tue 2:45 PM ET):

Addus HomeCare Corp (ADUS)
Bid Ask Last Change Volume P/E Market Cap
63.48 63.62 63.55 -0.66 50K 48 0.8B

ADUS Dividend-Like Income Using Covered Calls

With ADUS at 63.55, 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% 1.91 0.5
5% 3.18 0.9
10% 6.36 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
Apr 18 65.00 1.25 24 5.2 1.38 (2.2%)
May 17 70.00 0.40 53 0.8 6.38 (10.0%)
5% Yield On ADUS Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Apr 18 65.00 1.25 24 5.2 1.38 (2.2%)
May 17 65.00 2.35 53 4.4 1.38 (2.2%)
10% Yield On ADUS Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Apr 18 65.00 1.25 24 5.2 1.38 (2.2%)
May 17 65.00 2.35 53 4.4 1.38 (2.2%)

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

 
Top 10 Open Interest For Apr 18 Expiration     Top 5 High Yield
1.SPY dividend 6.USO dividend   1.LULU dividend
2.EEM dividend 7.AAPL dividend   2.NBEV dividend
3.SPX dividend 8.BMY dividend   3.BB dividend
4.QQQ dividend 9.EWZ dividend   4.SPWR dividend
5.FXI dividend 10.IWM dividend   5.CRON dividend

Want more examples? ADTN Dividend | ADVM Dividend