JNJ Dividend Type Payments
Although JNJ has no upcoming (meaning, Board-approved and announced) dividends, you can sell covered calls on Johnson & Johnson 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):
| Johnson & Johnson (JNJ) | ||||||
|---|---|---|---|---|---|---|
| Bid | Ask | Last | Change | Volume | P/E | Market Cap |
| 163.00 | 164.53 | 163.71 | +0.58 | 5.8M | 28 | 393B |
JNJ Dividend-Like Income Using Covered Calls
With JNJ at 163.71, 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% | 4.91 | 1.3 |
| 5% | 8.19 | 2.2 |
| 10% | 16.37 | 4.5 |
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 JNJ Using Covered Calls | ||||||
|---|---|---|---|---|---|---|
| Expiration | Strike | Call Bid | Days | Cents/Day | Upside Potential | |
| May 2 | 165.00 | 3.05 | 36 | 8.5 | 0.47 (0.3%) | |
| Apr 4 | 165.00 | 0.97 | 8 | 12.1 | 0.47 (0.3%) | |
| 5% Yield On JNJ Using Covered Calls | ||||||
|---|---|---|---|---|---|---|
| Expiration | Strike | Call Bid | Days | Cents/Day | Upside Potential | |
| May 2 | 165.00 | 3.05 | 36 | 8.5 | 0.47 (0.3%) | |
| Apr 4 | 165.00 | 0.97 | 8 | 12.1 | 0.47 (0.3%) | |
| 10% Yield On JNJ Using Covered Calls | ||||||
|---|---|---|---|---|---|---|
| Expiration | Strike | Call Bid | Days | Cents/Day | Upside Potential | |
| May 2 | 165.00 | 3.05 | 36 | 8.5 | 0.47 (0.3%) | |
| Apr 4 | 165.00 | 0.97 | 8 | 12.1 | 0.47 (0.3%) | |
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| Top 10 Open Interest For Apr 17 Expiration | Top 5 High Yield | |||||
|---|---|---|---|---|---|---|
| 1. | NVDA dividend | 6. | NIO dividend | 1. | EWTX dividend | |
| 2. | SPY dividend | 7. | EEM dividend | 2. | CORZ dividend | |
| 3. | SLV dividend | 8. | TLT dividend | 3. | RCAT dividend | |
| 4. | ASHR dividend | 9. | IWM dividend | 4. | ACHR dividend | |
| 5. | QQQ dividend | 10. | TSLA dividend | 5. | X dividend | |
Want more examples? JMOM Dividend | JNK Dividend
