JEPI Dividend Type Payments
Although JEPI has no upcoming (meaning, Board-approved and announced) dividends, you can sell covered calls on JPMorgan Equity Premium Income ETF to create 12 extra dividend type payments per year to boost its yield. Let's look at some recent prices (last updated Thu 4:16 PM ET):
| JPMorgan Equity Premium Income ETF (JEPI) | ||||||
|---|---|---|---|---|---|---|
| Bid | Ask | Last | Change | Volume | P/E | Market Cap |
| 57.37 | 57.55 | 57.41 | +0.17 | 6.5M | - | 0.0B |
JEPI Dividend-Like Income Using Covered Calls
With JEPI at 57.41, 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% | 1.72 | 0.5 |
| 5% | 2.87 | 0.8 |
| 10% | 5.74 | 1.6 |
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 JEPI Using Covered Calls | ||||||
|---|---|---|---|---|---|---|
| Expiration | Strike | Call Bid | Days | Cents/Day | Upside Potential | |
| Jan 16 | 58.00 | 0.20 | 30 | 0.7 | 0.45 (0.8%) | |
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| Top 10 Open Interest For Dec 19 Expiration | Top 5 High Yield | |||||
|---|---|---|---|---|---|---|
| 1. | NVDA dividend | 6. | TSLA dividend | 1. | KBH dividend | |
| 2. | SPY dividend | 7. | SLV dividend | 2. | OMER dividend | |
| 3. | QQQ dividend | 8. | NFLX dividend | 3. | BB dividend | |
| 4. | IBIT dividend | 9. | AMZN dividend | 4. | TLRY dividend | |
| 5. | TLT dividend | 10. | GLD dividend | 5. | TE dividend | |
Want more examples? JELD Dividend | JETS Dividend
