JNJ Dividend Type Payments
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 Wed 4:16 PM ET):
| Johnson & Johnson (JNJ) | ||||||
|---|---|---|---|---|---|---|
| Bid | Ask | Last | Change | Volume | P/E | Market Cap |
| 175.00 | 176.20 | 175.79 | -1.17 | 6.8M | 19 | 426B |
JNJ Dividend-Like Income Using Covered Calls
With JNJ at 175.79, 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% | 5.27 | 1.4 |
| 5% | 8.79 | 2.4 |
| 10% | 17.58 | 4.8 |
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 | |
| Oct 3 | 180.00 | 1.14 | 24 | 4.8 | 3.80 (2.2%) | |
| Oct 10 | 180.00 | 1.37 | 31 | 4.4 | 3.80 (2.2%) | |
| 5% Yield On JNJ Using Covered Calls | ||||||
|---|---|---|---|---|---|---|
| Expiration | Strike | Call Bid | Days | Cents/Day | Upside Potential | |
| Oct 3 | 180.00 | 1.14 | 24 | 4.8 | 3.80 (2.2%) | |
| Oct 10 | 180.00 | 1.37 | 31 | 4.4 | 3.80 (2.2%) | |
| 10% Yield On JNJ Using Covered Calls | ||||||
|---|---|---|---|---|---|---|
| Expiration | Strike | Call Bid | Days | Cents/Day | Upside Potential | |
| Sep 12 | 177.50 | 0.28 | 3 | 9.3 | 1.30 (0.7%) | |
| Oct 17 | 180.00 | 2.29 | 38 | 6.0 | 3.80 (2.2%) | |
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| Top 10 Open Interest For Sep 19 Expiration | Top 5 High Yield | |||||
|---|---|---|---|---|---|---|
| 1. | NVDA dividend | 6. | IBIT dividend | 1. | RNA dividend | |
| 2. | PCG dividend | 7. | QQQ dividend | 2. | ATYR dividend | |
| 3. | IWM dividend | 8. | SLV dividend | 3. | ADBE dividend | |
| 4. | SPY dividend | 9. | FXI dividend | 4. | ASTS dividend | |
| 5. | EEM dividend | 10. | TSLA dividend | 5. | RH dividend | |
Want more examples? JMOM Dividend | JNK Dividend
