JBL Dividend

Jabil Inc. dividend

Although JBL has a dividend of 0.08 with an ex-dividend date of Feb 17, you can sell covered calls on Jabil Inc. to create 12 extra dividend type payments per year to boost its yield. Let's look at some recent prices (last updated Thu 9:55 AM ET):

Jabil Inc. (JBL)
Bid Ask Last Change Volume P/E Market Cap
244.42 245.41 244.93 +1.31 57K 38 26B

JBL Dividend-Like Income Using Covered Calls

With JBL at 244.93, 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% 7.35 2.0
5% 12.25 3.4
10% 24.49 6.7

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 JBL Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Jun 18 250.00 24.50 141 17.4 4.59 (1.9%)
Sep 18 250.00 32.10 233 13.8 4.59 (1.9%)
5% Yield On JBL Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Jun 18 250.00 24.50 141 17.4 4.59 (1.9%)
Sep 18 250.00 32.10 233 13.8 4.59 (1.9%)
10% Yield On JBL Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Jun 18 250.00 24.50 141 17.4 4.59 (1.9%)
Sep 18 250.00 32.10 233 13.8 4.59 (1.9%)

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