JPM Dividend
Although JPM has a dividend of 1.25 with an ex-dividend date of Oct 4, 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 |
| 210.75 | 210.98 | 211.09 | +0.61 | 19.7M | 12 | 599B |
JPM Dividend-Like Income Using Covered Calls
With JPM at 211.09, 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% | 6.33 | 1.7 |
| 5% | 10.55 | 2.9 |
| 10% | 21.11 | 5.8 |
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 JPM Using Covered Calls | ||||||
|---|---|---|---|---|---|---|
| Expiration | Strike | Call Bid | Days | Cents/Day | Upside Potential | |
| Oct 4 | 210.00 | 3.80 | 15 | 18.8 | 0.00 (0.0%) | |
| Oct 11 | 210.00 | 5.35 | 22 | 19.9 | 0.00 (0.0%) | |
| 5% Yield On JPM Using Covered Calls | ||||||
|---|---|---|---|---|---|---|
| Expiration | Strike | Call Bid | Days | Cents/Day | Upside Potential | |
| Oct 4 | 210.00 | 3.80 | 15 | 18.8 | 0.00 (0.0%) | |
| Oct 11 | 210.00 | 5.35 | 22 | 19.9 | 0.00 (0.0%) | |
| 10% Yield On JPM Using Covered Calls | ||||||
|---|---|---|---|---|---|---|
| Expiration | Strike | Call Bid | Days | Cents/Day | Upside Potential | |
| Oct 4 | 210.00 | 3.80 | 15 | 18.8 | 0.00 (0.0%) | |
| Oct 11 | 210.00 | 5.35 | 22 | 19.9 | 0.00 (0.0%) | |
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| Top 10 Open Interest For Oct 18 Expiration | Top 5 High Yield | |||||
|---|---|---|---|---|---|---|
| 1. | NVDA dividend | 6. | SLV dividend | 1. | RLAY dividend | |
| 2. | IWM dividend | 7. | GLD dividend | 2. | LUNR dividend | |
| 3. | SPY dividend | 8. | TLT dividend | 3. | MARA dividend | |
| 4. | QQQ dividend | 9. | EEM dividend | 4. | CPRI dividend | |
| 5. | HYG dividend | 10. | AAPL dividend | 5. | MBLY dividend | |
Want more examples? JPIN Dividend | JPMB Dividend
