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 Wed 4:16 PM ET):

Johnson & Johnson (JNJ)
Bid Ask Last Change Volume P/E Market Cap
166.16 166.99 166.15 -0.92 4.7M 11 402B

JNJ Dividend-Like Income Using Covered Calls

With JNJ at 166.15, 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% 4.98 1.4
5% 8.31 2.3
10% 16.62 4.6

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 4 167.50 1.61 17 9.5 0.51 (0.3%)
Oct 11 167.50 1.91 24 8.0 0.51 (0.3%)
5% Yield On JNJ Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Oct 4 167.50 1.61 17 9.5 0.51 (0.3%)
Oct 11 167.50 1.91 24 8.0 0.51 (0.3%)
10% Yield On JNJ Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Oct 4 167.50 1.61 17 9.5 0.51 (0.3%)
Oct 11 167.50 1.91 24 8.0 0.51 (0.3%)

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