JKHY Dividend Type Payments

Jack Henry & Associates, Inc. dividend

Although JKHY has no upcoming (meaning, Board-approved and announced) dividends, 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 Wed 4:16 PM ET):

Jack Henry & Associates, Inc. (JKHY)
Bid Ask Last Change Volume P/E Market Cap
174.48 178.56 176.50 -1.17 1.1M 33 13B

JKHY Dividend-Like Income Using Covered Calls

With JKHY at 176.50, 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% 5.30 1.5
5% 8.83 2.4
10% 17.65 4.8

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 JKHY Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Jan 17 185.00 1.00 31 3.2 6.44 (3.6%)
Jun 20 180.00 8.70 185 4.7 1.44 (0.8%)
5% Yield On JKHY Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Jan 17 185.00 1.00 31 3.2 6.44 (3.6%)
Jun 20 180.00 8.70 185 4.7 1.44 (0.8%)
10% Yield On JKHY Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Mar 21 180.00 4.80 94 5.1 1.44 (0.8%)

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