CALM Dividend Type Payments

CAL-MAINE FOODS dividend

Although CALM has no upcoming (meaning, Board-approved and announced) dividends, you can sell covered calls on CAL-MAINE FOODS to create 12 extra dividend type payments per year to boost its yield. Let's look at some recent prices (last updated Fri 1:00 PM ET):

CAL-MAINE FOODS (CALM)
Bid Ask Last Change Volume P/E Market Cap
49.65 49.70 49.65 -0.05 72K 19 2.4B

CALM Dividend-Like Income Using Covered Calls

With CALM at 49.65, 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% 1.49 0.4
5% 2.48 0.7
10% 4.97 1.4

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 CALM Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Aug 24 51.50 0.05 8 0.6 1.80 (3.6%)
Aug 31 52.00 0.15 15 1.0 2.30 (4.6%)
5% Yield On CALM Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Aug 24 51.00 0.15 8 1.9 1.30 (2.6%)
Aug 31 52.00 0.15 15 1.0 2.30 (4.6%)
10% Yield On CALM Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Aug 24 51.00 0.15 8 1.9 1.30 (2.6%)
Aug 31 51.00 0.35 15 2.3 1.30 (2.6%)

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Want more examples? CALL Dividend | CALX Dividend