JKHY Dividend

Although JKHY has a dividend of 0.55 with an ex-dividend date of Dec 2, you can sell covered calls on Jack Henry & Associates, Inc. to create 12 extra dividend type payments per year to boost its yield. Let's look at some recent prices (last updated Fri 4:16 PM ET):

Jack Henry & Associates, Inc. (JKHY)
Bid	Ask	Last	Change	Volume	P/E	Market Cap
171.00	173.50	173.21	+0.76	1.3M	32	13B

JKHY Dividend-Like Income Using Covered Calls

With JKHY at 173.21, 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%	5.20	1.4
5%	8.66	2.4
10%	17.32	4.7

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 JKHY Using Covered Calls
Expiration	Strike	Call Bid	Days	Cents/Day	Upside Potential
Dec 20	175.00	2.20	36	6.1	1.50 (0.9%)
Jan 17	175.00	3.20	64	5.0	1.50 (0.9%)

5% Yield On JKHY Using Covered Calls
Expiration	Strike	Call Bid	Days	Cents/Day	Upside Potential
Dec 20	175.00	2.20	36	6.1	1.50 (0.9%)
Jan 17	175.00	3.20	64	5.0	1.50 (0.9%)

10% Yield On JKHY Using Covered Calls
Expiration	Strike	Call Bid	Days	Cents/Day	Upside Potential
Dec 20	175.00	2.20	36	6.1	1.50 (0.9%)
Jan 17	175.00	3.20	64	5.0	1.50 (0.9%)

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Top 10 Open Interest For Dec 20 Expiration				Top 5 High Yield
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Want more examples? JJSF Dividend | JKS Dividend