CALM Dividend

Although CALM has a dividend of 3.46 with an ex-dividend date of Apr 30, 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
94.00	95.22	94.68	+2.10	1.5M	7.2	4.5B

CALM Dividend-Like Income Using Covered Calls

With CALM at 94.68, 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%	2.84	0.8
5%	4.73	1.3
10%	9.47	2.6

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
Aug 15	100.00	7.00	128	5.5	4.78 (5.0%)
May 16	100.00	2.70	37	7.3	4.78 (5.0%)

5% Yield On CALM Using Covered Calls
Expiration	Strike	Call Bid	Days	Cents/Day	Upside Potential
Aug 15	100.00	7.00	128	5.5	4.78 (5.0%)
May 16	100.00	2.70	37	7.3	4.78 (5.0%)

10% Yield On CALM Using Covered Calls
Expiration	Strike	Call Bid	Days	Cents/Day	Upside Potential
Aug 15	100.00	7.00	128	5.5	4.78 (5.0%)
May 16	100.00	2.70	37	7.3	4.78 (5.0%)

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Want more examples? CAL Dividend | CALX Dividend