ADM Dividend Type Payments

Archer-Daniels-Midland Company dividend

Although ADM has no upcoming (meaning, Board-approved and announced) dividends, you can sell covered calls on Archer-Daniels-Midland Company to create 12 extra dividend type payments per year to boost its yield. Let's look at some recent prices (last updated Wed 9:35 AM ET):

Archer-Daniels-Midland Company (ADM)
Bid Ask Last Change Volume P/E Market Cap
51.36 51.42 51.39 -0.10 100K 15 25B

ADM Dividend-Like Income Using Covered Calls

With ADM at 51.39, 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% 1.54 0.4
5% 2.57 0.7
10% 5.14 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 ADM Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Dec 20 52.00 0.15 3 5.0 0.58 (1.1%)
Dec 27 52.00 0.40 10 4.0 0.58 (1.1%)
5% Yield On ADM Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Dec 20 52.00 0.15 3 5.0 0.58 (1.1%)
Dec 27 52.00 0.40 10 4.0 0.58 (1.1%)
10% Yield On ADM Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Dec 20 52.00 0.15 3 5.0 0.58 (1.1%)
Dec 27 52.00 0.40 10 4.0 0.58 (1.1%)

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Want more examples? ADI Dividend | ADMA Dividend