Boring...Stable is what I like. 4.19% dividend at the close of today. Many times I will do covered calls way out of the money. If it gets called away, I'll wait 31 days then buy some more... ADM’s (NYSE: ADM) Board of Directors has declared a cash dividend of 36.0 cents per share on the company’s common stock. The dividend is payable on June 10, 2020, to shareholders of record on May 20, 2020. This is ADM’s 354th consecutive quarterly payment, a record of 88 years of uninterrupted dividends. As of March 31, 2020, there were 555,472,189 shares of ADM common stock outstanding. www.adm.com.
@Cabin111, good find, well done & good luck. isn't that3x dividends totaling $1.08 between now & end of 2020? if you like the stock, on top of the CC, consider a long naked put December expiry at $28 strike, pays $1.66. https://www.barchart.com/stocks/quotes/ADM/options?expiration=2020-12-18-m play time decay - buy to close 45-60 days before expiry for a net take home of approx $1.30
Widow/orphan, it has never claimed to be anything BUT that. Yet, with dividends being cut left and right it stays steady. The covered call money can be a bonus. Just my trading style... What Is Widow-and-Orphan Stock? Widow-and-orphan stock refers to an equity investment that often pays a high dividend and is generally considered low risk. Widow-and-orphan stocks usually are found in non-cyclical sectors such as utilities and consumer staples, which tend to hold up better during economic downturns. Widow-and-orphan stocks generally provide low, but steady returns cushioned partly by their dividends or monopoly-like positions. In comparison, growth stocks with high price-earnings multiples that do not pay dividends are the opposite of widow-and-orphan stocks.
Another one to yawn at... CHARLOTTE, N.C., May 7, 2020 /PRNewswire/ -- Duke Energy today declared a quarterly cash dividend on its common stock of $0.945 per share payable on June 16, 2020, to shareholders of record at the close of business May 15, 2020. 4.72% (per Yahoo Finance) at close today. Duke Energy has paid a cash dividend on its common stock for 94 consecutive years. Duke Energy">Duke Energy Charlotte, N.C., is one of the largest energy holding companies in the U.S. It employs 29,000 people and has an electric generating capacity of 51,000 megawatts through its regulated utilities and 2,300 megawatts through its nonregulated Duke Energy Renewables unit." The Electric Utilities and Infrastructure unit's regulated utilities serve 7.8 million retail electric customers in six states: North Carolina, South Carolina, Florida, Indiana, Ohio and Kentucky. The Gas Utilities and Infrastructure unit distributes natural gas to 1.6 million customers in five states: North Carolina, South Carolina, Tennessee, Ohio and Kentucky. The Duke Energy Renewables unit operates wind and solar generation facilities across the U.S., as well as energy storage and microgrid projects.
I've owned it in the past and sold covered calls to enhance yield. Honestly, I sell covered and sometimes uncovered calls against almost everything I own. However, FANG stocks actually held up better from January to the March lows. ADM seem to provide additional safety over many S&P or sector ETFs. Might be a decent inflation hedge. I don't see the safety there. Was 101 early march, dropped to 64 a couple weeks later. That's about as bad as the S&P. But S&P has offered better performance long-term. Utilities won't do well with inflation.
My thoughts are Duke was overpriced in March. You had oil going down (but not crashing) and you had many retirees (and others...pensions) looking for secure income. Before the crash, CDs were still paying diddly/squat. Just me, I believe Duke is priced correctly now...