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 Tue 4:16 PM ET):

Cal-Maine Foods, Inc. (CALM)
Bid Ask Last Change Volume P/E Market Cap
106.00 109.41 107.83 +0.30 437K 4.3 5.7B

CALM Dividend-Like Income Using Covered Calls

With CALM at 107.83, 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% 3.23 0.9
5% 5.39 1.5
10% 10.78 3.0

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 15 110.00 0.50 4 12.5 0.59 (0.5%)
Sep 19 110.00 3.30 39 8.5 0.59 (0.5%)
5% Yield On CALM Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Aug 15 110.00 0.50 4 12.5 0.59 (0.5%)
Sep 19 110.00 3.30 39 8.5 0.59 (0.5%)
10% Yield On CALM Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Aug 15 110.00 0.50 4 12.5 0.59 (0.5%)
Sep 19 110.00 3.30 39 8.5 0.59 (0.5%)

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Want more examples? CAL Dividend | CALX Dividend