JAZZ Dividend Type Payments

Jazz Pharmaceuticals Plc dividend

Although JAZZ has no upcoming (meaning, Board-approved and announced) dividends, you can sell covered calls on Jazz Pharmaceuticals Plc to create 12 extra dividend type payments per year to boost its yield. Let's look at some recent prices (last updated Tue 2:20 PM ET):

Jazz Pharmaceuticals Plc (JAZZ)
Bid Ask Last Change Volume P/E Market Cap
127.36 127.56 127.43 +1.50 175K 15 7.6B

JAZZ Dividend-Like Income Using Covered Calls

With JAZZ at 127.43, here's a table showing how big the annual "dividend" (ie. 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% 3.82 1.0
5% 6.37 1.7
10% 12.74 3.5

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 JAZZ Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Mar 15 145.00 0.40 25 1.6 17.44 (13.7%)
Jun 21 155.00 1.85 123 1.5 27.44 (21.5%)
5% Yield On JAZZ Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Mar 15 140.00 0.80 25 3.2 12.44 (9.8%)
Jun 21 150.00 2.60 123 2.1 22.44 (17.6%)
10% Yield On JAZZ Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Mar 15 135.00 1.80 25 7.2 7.44 (5.8%)
Jun 21 140.00 5.10 123 4.1 12.44 (9.8%)

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