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 Mon 4:16 PM ET):

Johnson & Johnson (JNJ)
Bid Ask Last Change Volume P/E Market Cap
190.10 190.89 190.90 +0.18 7.5M 20 459B

JNJ Dividend-Like Income Using Covered Calls

With JNJ at 190.90, 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% 5.73 1.6
5% 9.55 2.6
10% 19.09 5.2

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
Nov 7 190.00 5.20 26 16.6 0.00 (0.0%)
Nov 14 190.00 5.70 33 14.6 0.00 (0.0%)
5% Yield On JNJ Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Nov 7 190.00 5.20 26 16.6 0.00 (0.0%)
Nov 14 190.00 5.70 33 14.6 0.00 (0.0%)
10% Yield On JNJ Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Nov 7 190.00 5.20 26 16.6 0.00 (0.0%)
Nov 14 190.00 5.70 33 14.6 0.00 (0.0%)

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