CALM Dividend Type Payments

Cal-Maine Foods, Inc dividend

Although CALM has no upcoming (meaning, Board-approved and announced) dividends, you can sell covered calls on Cal-Maine Foods, Inc to create 12 extra dividend type payments per year to boost its yield. Let's look at some recent prices (last updated Fri 4:16 PM ET):

Cal-Maine Foods, Inc (CALM)
Bid Ask Last Change Volume P/E Market Cap
39.01 48.40 45.10 -0.45 232K - 0.0B

CALM Dividend-Like Income Using Covered Calls

With CALM at 45.10, 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% 1.35 0.4
5% 2.26 0.6
10% 4.51 1.2

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
Jan 11 50.00 0.15 29 0.5 1.60 (3.5%)
Jan 18 50.00 0.25 36 0.7 1.60 (3.5%)
5% Yield On CALM Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Jan 11 49.50 0.20 29 0.7 1.10 (2.4%)
Jan 18 50.00 0.25 36 0.7 1.60 (3.5%)
10% Yield On CALM Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Jan 25 48.50 0.60 43 1.4 0.10 (0.2%)

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Want more examples? CALL Dividend | CALX Dividend