JEC Dividend Type Payments

JACOBS ENGINEERING dividend

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

JACOBS ENGINEERING (JEC)
Bid Ask Last Change Volume P/E Market Cap
61.85 77.55 73.85 -0.48 804K 33 11B

JEC Dividend-Like Income Using Covered Calls

With JEC at 73.85, 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% 2.22 0.6
5% 3.69 1.0
10% 7.39 2.0

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 JEC Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Nov 16 77.50 0.55 31 1.6 0.00 (0.0%)
Jan 18 82.50 0.80 94 0.9 4.95 (6.7%)
5% Yield On JEC Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Nov 16 77.50 0.55 31 1.6 0.00 (0.0%)
Jan 18 80.00 1.35 94 1.4 2.45 (3.3%)
10% Yield On JEC Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Jan 18 77.50 2.10 94 2.2 0.00 (0.0%)

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