CALM Dividend Type Payments
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 Thu 4:16 PM ET):
Cal-Maine Foods, Inc. (CALM) | ||||||
---|---|---|---|---|---|---|
Bid | Ask | Last | Change | Volume | P/E | Market Cap |
58.00 | 59.41 | 58.85 | +0.23 | 613K | 6.3 | 2.9B |
CALM Dividend-Like Income Using Covered Calls
With CALM at 58.85, 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% | 1.77 | 0.5 |
5% | 2.94 | 0.8 |
10% | 5.89 | 1.6 |
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 | |
Apr 19 | 60.00 | 1.40 | 23 | 6.1 | 0.59 (1.0%) | |
May 17 | 60.00 | 1.80 | 51 | 3.5 | 0.59 (1.0%) |
5% Yield On CALM Using Covered Calls | ||||||
---|---|---|---|---|---|---|
Expiration | Strike | Call Bid | Days | Cents/Day | Upside Potential | |
Apr 19 | 60.00 | 1.40 | 23 | 6.1 | 0.59 (1.0%) | |
May 17 | 60.00 | 1.80 | 51 | 3.5 | 0.59 (1.0%) |
10% Yield On CALM Using Covered Calls | ||||||
---|---|---|---|---|---|---|
Expiration | Strike | Call Bid | Days | Cents/Day | Upside Potential | |
Apr 19 | 60.00 | 1.40 | 23 | 6.1 | 0.59 (1.0%) | |
May 17 | 60.00 | 1.80 | 51 | 3.5 | 0.59 (1.0%) |
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Top 10 Open Interest For Apr 19 Expiration | Top 5 High Yield | |||||
---|---|---|---|---|---|---|
1. | IWM dividend | 6. | TLT dividend | 1. | MRNS dividend | |
2. | SPY dividend | 7. | HYG dividend | 2. | LUNR dividend | |
3. | QQQ dividend | 8. | AAPL dividend | 3. | SOUN dividend | |
4. | FXI dividend | 9. | EEM dividend | 4. | CLSK dividend | |
5. | SLV dividend | 10. | TSLA dividend | 5. | CIFR dividend |
Want more examples? CAL Dividend | CALX Dividend