JPM Dividend Type Payments

JP Morgan Chase & Co. dividend

Although JPM has no upcoming (meaning, Board-approved and announced) dividends, 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 Thu 4:16 PM ET):

JP Morgan Chase & Co. (JPM)
Bid Ask Last Change Volume P/E Market Cap
232.05 234.35 231.96 +2.35 9.4M 12 642B

JPM Dividend-Like Income Using Covered Calls

With JPM at 231.96, 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% 6.96 1.9
5% 11.60 3.2
10% 23.20 6.4

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
May 2 235.00 4.30 16 26.9 0.65 (0.3%)
May 9 235.00 5.60 23 24.3 0.65 (0.3%)
5% Yield On JPM Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
May 2 235.00 4.30 16 26.9 0.65 (0.3%)
May 9 235.00 5.60 23 24.3 0.65 (0.3%)
10% Yield On JPM Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
May 2 235.00 4.30 16 26.9 0.65 (0.3%)
May 9 235.00 5.60 23 24.3 0.65 (0.3%)

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