JNK Dividend Type Payments
Although JNK has no upcoming (meaning, Board-approved and announced) dividends, you can sell covered calls on SPDR Bloomberg High Yield Bond ETF to create 12 extra dividend type payments per year to boost its yield. Let's look at some recent prices (last updated Wed 12:20 PM ET):
| SPDR Bloomberg High Yield Bond ETF (JNK) | ||||||
|---|---|---|---|---|---|---|
| Bid | Ask | Last | Change | Volume | P/E | Market Cap |
| 96.34 | 96.35 | 96.34 | -0.08 | 926K | - | 7.7B |
JNK Dividend-Like Income Using Covered Calls
With JNK at 96.34, 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% | 2.89 | 0.8 |
| 5% | 4.82 | 1.3 |
| 10% | 9.63 | 2.6 |
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:
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| Top 10 Open Interest For Dec 20 Expiration | Top 5 High Yield | |||||
|---|---|---|---|---|---|---|
| 1. | NVDA dividend | 6. | EEM dividend | 1. | QBTS dividend | |
| 2. | SPY dividend | 7. | IWM dividend | 2. | RGTI dividend | |
| 3. | XLF dividend | 8. | KWEB dividend | 3. | WOLF dividend | |
| 4. | QQQ dividend | 9. | TLT dividend | 4. | NMRA dividend | |
| 5. | FXI dividend | 10. | TSLA dividend | 5. | QS dividend | |
Want more examples? JNJ Dividend | JNPR Dividend
