JBSS Dividend Type Payments
Although JBSS has no upcoming (meaning, Board-approved and announced) dividends, you can sell covered calls on John B. Sanfilippo & Son, Inc. to create 12 extra dividend type payments per year to boost its yield. Let's look at some recent prices (last updated Fri 11:15 AM ET):
| John B. Sanfilippo & Son, Inc. (JBSS) | ||||||
|---|---|---|---|---|---|---|
| Bid | Ask | Last | Change | Volume | P/E | Market Cap |
| 70.13 | 70.39 | 70.40 | +0.01 | 17K | 17 | 0.8B |
JBSS Dividend-Like Income Using Covered Calls
With JBSS at 70.40, 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% | 2.11 | 0.6 |
| 5% | 3.52 | 1.0 |
| 10% | 7.04 | 1.9 |
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 JBSS Using Covered Calls | ||||||
|---|---|---|---|---|---|---|
| Expiration | Strike | Call Bid | Days | Cents/Day | Upside Potential | |
| Sep 19 | 75.00 | 1.30 | 190 | 0.7 | 4.61 (6.5%) | |
| Mar 21 | 85.00 | 0.05 | 8 | 0.6 | 14.61 (20.8%) | |
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| Top 10 Open Interest For Mar 21 Expiration | Top 5 High Yield | |||||
|---|---|---|---|---|---|---|
| 1. | NVDA dividend | 6. | EEM dividend | 1. | OKLO dividend | |
| 2. | SPY dividend | 7. | KWEB dividend | 2. | ASTS dividend | |
| 3. | IWM dividend | 8. | TSLA dividend | 3. | IONQ dividend | |
| 4. | FXI dividend | 9. | INTC dividend | 4. | NBIS dividend | |
| 5. | QQQ dividend | 10. | TLT dividend | 5. | PATH dividend | |
Want more examples? JBLU Dividend | JCI Dividend
