YieldBoost ADM From 3.7% To 9.9% Using Options
November 27, 2024 at 11:36 AM EST
Shareholders of Archer Daniels Midland Co. (ADM) looking to boost their income beyond the stock's 3.7% annualized dividend yield can sell the September 2025 covered call at the $60 strike and collect the premium based on the $2.75 bid, which annualizes to an additional 6.3% rate of return against the current stock price (at Stock Options Channel we call this the YieldBoost), for a total of 9.9% annualized rate in the scenario where the stock is not called away..
