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 Fri 4:16 PM ET):
| Johnson & Johnson (JNJ) | ||||||
|---|---|---|---|---|---|---|
| Bid | Ask | Last | Change | Volume | P/E | Market Cap |
| 176.57 | 178.75 | 178.06 | -0.44 | 5.3M | 19 | 430B |
JNJ Dividend-Like Income Using Covered Calls
With JNJ at 178.06, 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% | 5.34 | 1.5 |
| 5% | 8.90 | 2.4 |
| 10% | 17.81 | 4.9 |
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 | 1.64 | 22 | 7.5 | 1.25 (0.7%) | |
| Oct 10 | 180.00 | 2.26 | 29 | 7.8 | 1.25 (0.7%) | |
| 5% Yield On JNJ Using Covered Calls | ||||||
|---|---|---|---|---|---|---|
| Expiration | Strike | Call Bid | Days | Cents/Day | Upside Potential | |
| Oct 3 | 180.00 | 1.64 | 22 | 7.5 | 1.25 (0.7%) | |
| Oct 10 | 180.00 | 2.26 | 29 | 7.8 | 1.25 (0.7%) | |
| 10% Yield On JNJ Using Covered Calls | ||||||
|---|---|---|---|---|---|---|
| Expiration | Strike | Call Bid | Days | Cents/Day | Upside Potential | |
| Oct 3 | 180.00 | 1.64 | 22 | 7.5 | 1.25 (0.7%) | |
| Oct 10 | 180.00 | 2.26 | 29 | 7.8 | 1.25 (0.7%) | |
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| Top 10 Open Interest For Sep 19 Expiration | Top 5 High Yield | |||||
|---|---|---|---|---|---|---|
| 1. | NVDA dividend | 6. | QQQ dividend | 1. | ATYR dividend | |
| 2. | SPY dividend | 7. | IBIT dividend | 2. | OPEN dividend | |
| 3. | IWM dividend | 8. | SLV dividend | 3. | IONQ dividend | |
| 4. | PCG dividend | 9. | TSLA dividend | 4. | QURE dividend | |
| 5. | EEM dividend | 10. | FXI dividend | 5. | ARCT dividend | |
Want more examples? JMOM Dividend | JNK Dividend
