SAFM Dividend Type Payments

SANDERSON FARMS dividend

Although SAFM has no upcoming (meaning, Board-approved and announced) dividends, you can sell covered calls on SANDERSON FARMS 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):

SANDERSON FARMS (SAFM)
Bid Ask Last Change Volume P/E Market Cap
101.82 111.21 104.07 -4.60 500K 8.8 2.5B

SAFM Dividend-Like Income Using Covered Calls

With SAFM at 104.07, 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% 3.12 0.9
5% 5.20 1.4
10% 10.41 2.9

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 SAFM Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Sep 21 120.00 0.45 32 1.4 8.79 (8.4%)
Oct 19 125.00 0.60 60 1.0 13.79 (13.3%)
5% Yield On SAFM Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Sep 21 115.00 1.00 32 3.1 3.79 (3.6%)
Oct 19 120.00 1.05 60 1.8 8.79 (8.4%)
10% Yield On SAFM Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Sep 21 115.00 1.00 32 3.1 3.79 (3.6%)
Oct 19 115.00 2.05 60 3.4 3.79 (3.6%)

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Want more examples? SAFE Dividend | SAFT Dividend