JNJ Dividend Type Payments

Johnson & Johnson dividend

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 Wed 9:45 AM ET):

Johnson & Johnson (JNJ)
Bid Ask Last Change Volume P/E Market Cap
145.89 145.93 145.90 -0.51 912K 24 353B

JNJ Dividend-Like Income Using Covered Calls

With JNJ at 145.90, 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% 4.38 1.2
5% 7.30 2.0
10% 14.59 4.0

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
Dec 20 146.00 0.96 3 32.0 0.07 (0.0%)
Dec 27 146.00 1.59 10 15.9 0.07 (0.0%)
5% Yield On JNJ Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Dec 20 146.00 0.96 3 32.0 0.07 (0.0%)
Dec 27 146.00 1.59 10 15.9 0.07 (0.0%)
10% Yield On JNJ Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Dec 20 146.00 0.96 3 32.0 0.07 (0.0%)
Dec 27 146.00 1.59 10 15.9 0.07 (0.0%)

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