JAZZ Dividend Type Payments
Although JAZZ has no upcoming (meaning, Board-approved and announced) dividends, you can sell covered calls on Jazz Pharmaceuticals plc - Ordinary Shares 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):
| Jazz Pharmaceuticals plc - Ordinary Shares (JAZZ) | ||||||
|---|---|---|---|---|---|---|
| Bid | Ask | Last | Change | Volume | P/E | Market Cap |
| 105.00 | 115.00 | 111.13 | +2.33 | 704K | 15 | 6.7B |
JAZZ Dividend-Like Income Using Covered Calls
With JAZZ at 111.13, 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% | 3.33 | 0.9 |
| 5% | 5.56 | 1.5 |
| 10% | 11.11 | 3.0 |
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 JAZZ Using Covered Calls | ||||||
|---|---|---|---|---|---|---|
| Expiration | Strike | Call Bid | Days | Cents/Day | Upside Potential | |
| Oct 17 | 115.00 | 11.20 | 134 | 8.4 | 0.00 (0.0%) | |
| Jul 18 | 115.00 | 3.30 | 43 | 7.7 | 0.00 (0.0%) | |
| 5% Yield On JAZZ Using Covered Calls | ||||||
|---|---|---|---|---|---|---|
| Expiration | Strike | Call Bid | Days | Cents/Day | Upside Potential | |
| Oct 17 | 115.00 | 11.20 | 134 | 8.4 | 0.00 (0.0%) | |
| Jul 18 | 115.00 | 3.30 | 43 | 7.7 | 0.00 (0.0%) | |
| 10% Yield On JAZZ Using Covered Calls | ||||||
|---|---|---|---|---|---|---|
| Expiration | Strike | Call Bid | Days | Cents/Day | Upside Potential | |
| Oct 17 | 115.00 | 11.20 | 134 | 8.4 | 0.00 (0.0%) | |
| Jul 18 | 115.00 | 3.30 | 43 | 7.7 | 0.00 (0.0%) | |
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| Top 10 Open Interest For Jun 20 Expiration | Top 5 High Yield | |||||
|---|---|---|---|---|---|---|
| 1. | NVDA dividend | 6. | IWM dividend | 1. | APP dividend | |
| 2. | SPY dividend | 7. | EEM dividend | 2. | APLD dividend | |
| 3. | SLV dividend | 8. | TSLA dividend | 3. | SFIX dividend | |
| 4. | QQQ dividend | 9. | FXI dividend | 4. | ALT dividend | |
| 5. | GLD dividend | 10. | TLT dividend | 5. | SERV dividend | |
Want more examples? JAMF Dividend | JBGS Dividend
