JPM Dividend

Although JPM has a dividend of 1.50 with an ex-dividend date of Jan 6, you can sell covered calls on JP Morgan Chase & Co. 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):

JP Morgan Chase & Co. (JPM)
Bid	Ask	Last	Change	Volume	P/E	Market Cap
316.30	317.00	317.21	+4.21	20.4M	16	852B

JPM Dividend-Like Income Using Covered Calls

With JPM at 317.21, 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%	9.52	2.6
5%	15.86	4.3
10%	31.72	8.7

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 JPM Using Covered Calls
Expiration	Strike	Call Bid	Days	Cents/Day	Upside Potential
Dec 26	317.50	2.50	8	31.3	0.50 (0.2%)
Jan 2	317.50	4.10	15	27.3	0.50 (0.2%)

5% Yield On JPM Using Covered Calls
Expiration	Strike	Call Bid	Days	Cents/Day	Upside Potential
Dec 26	317.50	2.50	8	31.3	0.50 (0.2%)
Jan 2	317.50	4.10	15	27.3	0.50 (0.2%)

10% Yield On JPM Using Covered Calls
Expiration	Strike	Call Bid	Days	Cents/Day	Upside Potential
Dec 26	317.50	2.50	8	31.3	0.50 (0.2%)
Jan 2	317.50	4.10	15	27.3	0.50 (0.2%)

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Want more examples? JPIN Dividend | JPMB Dividend