JNJ Dividend
Although JNJ has a dividend of 1.30 with an ex-dividend date of Nov 25, 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 Wed 12:15 PM ET):
Johnson & Johnson (JNJ) | ||||||
---|---|---|---|---|---|---|
Bid | Ask | Last | Change | Volume | P/E | Market Cap |
190.75 | 190.79 | 190.75 | -0.10 | 2.8M | 20 | 460B |
JNJ Dividend-Like Income Using Covered Calls
With JNJ at 190.75, 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% | 5.72 | 1.6 |
5% | 9.54 | 2.6 |
10% | 19.08 | 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 | 4.30 | 24 | 14.6 | 0.00 (0.0%) | |
Nov 14 | 190.00 | 4.50 | 31 | 12.0 | 0.00 (0.0%) |
5% Yield On JNJ Using Covered Calls | ||||||
---|---|---|---|---|---|---|
Expiration | Strike | Call Bid | Days | Cents/Day | Upside Potential | |
Nov 7 | 190.00 | 4.30 | 24 | 14.6 | 0.00 (0.0%) | |
Nov 14 | 190.00 | 4.50 | 31 | 12.0 | 0.00 (0.0%) |
10% Yield On JNJ Using Covered Calls | ||||||
---|---|---|---|---|---|---|
Expiration | Strike | Call Bid | Days | Cents/Day | Upside Potential | |
Nov 7 | 190.00 | 4.30 | 24 | 14.6 | 0.00 (0.0%) | |
Nov 14 | 190.00 | 4.50 | 31 | 12.0 | 0.00 (0.0%) |
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Top 10 Open Interest For Oct 17 Expiration | Top 5 High Yield | |||||
---|---|---|---|---|---|---|
1. | NVDA dividend | 6. | INTC dividend | 1. | ABAT dividend | |
2. | IBIT dividend | 7. | SLV dividend | 2. | NB dividend | |
3. | SPY dividend | 8. | AMZN dividend | 3. | NPWR dividend | |
4. | GLD dividend | 9. | QQQ dividend | 4. | LPTH dividend | |
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Want more examples? JMOM Dividend | JNK Dividend