JEF Dividend Type Payments
Although JEF has no upcoming (meaning, Board-approved and announced) dividends, you can sell covered calls on Jefferies Financial Group Inc. to create 12 extra dividend type payments per year to boost its yield. Let's look at some recent prices (last updated Tue 11:00 AM ET):
| Jefferies Financial Group Inc. (JEF) | ||||||
|---|---|---|---|---|---|---|
| Bid | Ask | Last | Change | Volume | P/E | Market Cap |
| 64.46 | 64.64 | 64.48 | -0.69 | 381K | 22 | 13B |
JEF Dividend-Like Income Using Covered Calls
With JEF at 64.48, 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% | 1.93 | 0.5 |
| 5% | 3.22 | 0.9 |
| 10% | 6.45 | 1.8 |
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 JEF Using Covered Calls | ||||||
|---|---|---|---|---|---|---|
| Expiration | Strike | Call Bid | Days | Cents/Day | Upside Potential | |
| Apr 17 | 65.00 | 3.30 | 52 | 6.3 | 0.36 (0.6%) | |
| Sep 19 | 65.00 | 6.40 | 207 | 3.1 | 0.36 (0.6%) | |
| 5% Yield On JEF Using Covered Calls | ||||||
|---|---|---|---|---|---|---|
| Expiration | Strike | Call Bid | Days | Cents/Day | Upside Potential | |
| Apr 17 | 65.00 | 3.30 | 52 | 6.3 | 0.36 (0.6%) | |
| Sep 19 | 65.00 | 6.40 | 207 | 3.1 | 0.36 (0.6%) | |
| 10% Yield On JEF Using Covered Calls | ||||||
|---|---|---|---|---|---|---|
| Expiration | Strike | Call Bid | Days | Cents/Day | Upside Potential | |
| Apr 17 | 65.00 | 3.30 | 52 | 6.3 | 0.36 (0.6%) | |
| Sep 19 | 65.00 | 6.40 | 207 | 3.1 | 0.36 (0.6%) | |
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| Top 10 Open Interest For Mar 21 Expiration | Top 5 High Yield | |||||
|---|---|---|---|---|---|---|
| 1. | NVDA dividend | 6. | KWEB dividend | 1. | QBTS dividend | |
| 2. | SPY dividend | 7. | INTC dividend | 2. | SOUN dividend | |
| 3. | FXI dividend | 8. | QQQ dividend | 3. | ZI dividend | |
| 4. | EEM dividend | 9. | SLV dividend | 4. | LUNR dividend | |
| 5. | IWM dividend | 10. | TLT dividend | 5. | MARA dividend | |
Want more examples? JDST Dividend | JELD Dividend
