JBHT Dividend Type Payments

J.B. Hunt Transport Services, Inc dividend

Although JBHT has no upcoming (meaning, Board-approved and announced) dividends, you can sell covered calls on J.B. Hunt Transport Services, Inc to create 12 extra dividend type payments per year to boost its yield. Let's look at some recent prices (last updated Tue 4:16 PM ET):

J.B. Hunt Transport Services, Inc (JBHT)
Bid Ask Last Change Volume P/E Market Cap
93.57 99.50 93.57 -0.11 865K - 0.0B

JBHT Dividend-Like Income Using Covered Calls

With JBHT at 93.57, 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% 2.81 0.8
5% 4.68 1.3
10% 9.36 2.6

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 JBHT Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Jan 18 105.00 0.60 32 1.9 5.50 (5.9%)
Feb 15 110.00 0.60 60 1.0 10.50 (11.2%)
5% Yield On JBHT Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Jan 18 105.00 0.60 32 1.9 5.50 (5.9%)
Feb 15 105.00 1.30 60 2.2 5.50 (5.9%)
10% Yield On JBHT Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Jan 18 100.00 1.55 32 4.8 0.50 (0.5%)
Feb 15 100.00 2.50 60 4.2 0.50 (0.5%)

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