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 Wed 4:16 PM ET):
| Jazz Pharmaceuticals plc - Ordinary Shares (JAZZ) | ||||||
|---|---|---|---|---|---|---|
| Bid | Ask | Last | Change | Volume | P/E | Market Cap |
| 150.00 | 171.51 | 165.41 | -2.44 | 811K | - | 10B |
JAZZ Dividend-Like Income Using Covered Calls
With JAZZ at 165.41, 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% | 4.96 | 1.4 |
| 5% | 8.27 | 2.3 |
| 10% | 16.54 | 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 JAZZ Using Covered Calls | ||||||
|---|---|---|---|---|---|---|
| Expiration | Strike | Call Bid | Days | Cents/Day | Upside Potential | |
| May 15 | 175.00 | 6.60 | 108 | 6.1 | 3.49 (2.1%) | |
| Jun 18 | 175.00 | 7.80 | 142 | 5.5 | 3.49 (2.1%) | |
| 5% Yield On JAZZ Using Covered Calls | ||||||
|---|---|---|---|---|---|---|
| Expiration | Strike | Call Bid | Days | Cents/Day | Upside Potential | |
| May 15 | 175.00 | 6.60 | 108 | 6.1 | 3.49 (2.1%) | |
| Jun 18 | 175.00 | 7.80 | 142 | 5.5 | 3.49 (2.1%) | |
| 10% Yield On JAZZ Using Covered Calls | ||||||
|---|---|---|---|---|---|---|
| Expiration | Strike | Call Bid | Days | Cents/Day | Upside Potential | |
| May 15 | 175.00 | 6.60 | 108 | 6.1 | 3.49 (2.1%) | |
| Jun 18 | 175.00 | 7.80 | 142 | 5.5 | 3.49 (2.1%) | |
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| Top 10 Open Interest For Feb 20 Expiration | Top 5 High Yield | |||||
|---|---|---|---|---|---|---|
| 1. | SLV dividend | 6. | QQQ dividend | 1. | APLD dividend | |
| 2. | KWEB dividend | 7. | CORZ dividend | 2. | OCUL dividend | |
| 3. | NVDA dividend | 8. | INTC dividend | 3. | ONDS dividend | |
| 4. | GLD dividend | 9. | SPY dividend | 4. | CIFR dividend | |
| 5. | IBIT dividend | 10. | HYG dividend | 5. | ENPH dividend | |
Want more examples? JAMF Dividend | JBGS Dividend
