ANDE Dividend

The Andersons, Inc. dividend

Although ANDE has a dividend of 0.20 with an ex-dividend date of Oct 1, you can sell covered calls on The Andersons, Inc. to create 12 extra dividend type payments per year to boost its yield. Let's look at some recent prices (last updated Mon 4:16 PM ET):

The Andersons, Inc. (ANDE)
Bid Ask Last Change Volume P/E Market Cap
31.75 42.45 41.28 +0.33 263K 17 1.4B

ANDE Dividend-Like Income Using Covered Calls

With ANDE at 41.28, 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% 1.24 0.3
5% 2.06 0.6
10% 4.13 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 ANDE Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Oct 17 45.00 0.25 54 0.5 2.55 (6.2%)
Sep 19 45.00 0.25 26 1.0 2.55 (6.2%)
5% Yield On ANDE Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Sep 19 45.00 0.25 26 1.0 2.55 (6.2%)
Dec 19 45.00 1.45 117 1.2 2.55 (6.2%)
10% Yield On ANDE Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Dec 19 45.00 1.45 117 1.2 2.55 (6.2%)

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