JNJ Dividend
Although JNJ has a dividend of 1.30 with an ex-dividend date of May 27, 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 Thu 4:16 PM ET):
Johnson & Johnson (JNJ) | ||||||
---|---|---|---|---|---|---|
Bid | Ask | Last | Change | Volume | P/E | Market Cap |
157.43 | 158.37 | 157.47 | +3.56 | 11.0M | 27 | 371B |
JNJ Dividend-Like Income Using Covered Calls
With JNJ at 157.47, 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% | 4.72 | 1.3 |
5% | 7.87 | 2.2 |
10% | 15.75 | 4.3 |
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 | 160.00 | 1.25 | 16 | 7.8 | 1.63 (1.0%) | |
May 9 | 160.00 | 1.70 | 23 | 7.4 | 1.63 (1.0%) |
5% Yield On JNJ Using Covered Calls | ||||||
---|---|---|---|---|---|---|
Expiration | Strike | Call Bid | Days | Cents/Day | Upside Potential | |
May 2 | 160.00 | 1.25 | 16 | 7.8 | 1.63 (1.0%) | |
May 9 | 160.00 | 1.70 | 23 | 7.4 | 1.63 (1.0%) |
10% Yield On JNJ Using Covered Calls | ||||||
---|---|---|---|---|---|---|
Expiration | Strike | Call Bid | Days | Cents/Day | Upside Potential | |
May 2 | 160.00 | 1.25 | 16 | 7.8 | 1.63 (1.0%) | |
May 9 | 160.00 | 1.70 | 23 | 7.4 | 1.63 (1.0%) |
Want to increase dividends with covered calls? Sign Up For A Free Trial
Top 10 Open Interest For May 16 Expiration | Top 5 High Yield | |||||
---|---|---|---|---|---|---|
1. | NVDA dividend | 6. | IWM dividend | 1. | STLA dividend | |
2. | SPY dividend | 7. | GLD dividend | 2. | UPST dividend | |
3. | TLT dividend | 8. | FXI dividend | 3. | NBIS dividend | |
4. | SLV dividend | 9. | TSLA dividend | 4. | HOOD dividend | |
5. | QQQ dividend | 10. | INTC dividend | 5. | RIOT dividend |
Want more examples? JMOM Dividend | JNK Dividend