JEF Dividend Type Payments
Although JEF has no upcoming (meaning, Board-approved and announced) dividends, you can sell covered calls on Jefferies Financial Group Inc. to create 12 extra dividend type payments per year to boost its yield. Let's look at some recent prices (last updated Wed 11:45 AM ET):
| Jefferies Financial Group Inc. (JEF) | ||||||
|---|---|---|---|---|---|---|
| Bid | Ask | Last | Change | Volume | P/E | Market Cap |
| 55.29 | 55.31 | 55.31 | -0.03 | 490K | 19 | 11B |
JEF Dividend-Like Income Using Covered Calls
With JEF at 55.31, 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% | 1.66 | 0.5 |
| 5% | 2.77 | 0.8 |
| 10% | 5.53 | 1.5 |
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 JEF Using Covered Calls | ||||||
|---|---|---|---|---|---|---|
| Expiration | Strike | Call Bid | Days | Cents/Day | Upside Potential | |
| Aug 15 | 57.50 | 1.95 | 52 | 3.8 | 2.19 (4.0%) | |
| Jul 18 | 57.50 | 1.35 | 24 | 5.6 | 2.19 (4.0%) | |
| 5% Yield On JEF Using Covered Calls | ||||||
|---|---|---|---|---|---|---|
| Expiration | Strike | Call Bid | Days | Cents/Day | Upside Potential | |
| Aug 15 | 57.50 | 1.95 | 52 | 3.8 | 2.19 (4.0%) | |
| Jul 18 | 57.50 | 1.35 | 24 | 5.6 | 2.19 (4.0%) | |
| 10% Yield On JEF Using Covered Calls | ||||||
|---|---|---|---|---|---|---|
| Expiration | Strike | Call Bid | Days | Cents/Day | Upside Potential | |
| Aug 15 | 57.50 | 1.95 | 52 | 3.8 | 2.19 (4.0%) | |
| Jul 18 | 57.50 | 1.35 | 24 | 5.6 | 2.19 (4.0%) | |
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| Top 10 Open Interest For Jul 18 Expiration | Top 5 High Yield | |||||
|---|---|---|---|---|---|---|
| 1. | NVDA dividend | 6. | TSLA dividend | 1. | COGT dividend | |
| 2. | SLV dividend | 7. | IWM dividend | 2. | ALT dividend | |
| 3. | SPY dividend | 8. | AAPL dividend | 3. | CELC dividend | |
| 4. | GLD dividend | 9. | FXI dividend | 4. | APLD dividend | |
| 5. | TLT dividend | 10. | QQQ dividend | 5. | IREN dividend | |
Want more examples? JDST Dividend | JELD Dividend
