JKHY Dividend Type Payments

JACK HENRY & ASSOCIATES dividend

Although JKHY has no upcoming (meaning, Board-approved and announced) dividends, you can sell covered calls on JACK HENRY & ASSOCIATES to create 12 extra dividend type payments per year to boost its yield. Let's look at some recent prices (last updated Fri 3:10 PM ET):

JACK HENRY & ASSOCIATES (JKHY)
Bid Ask Last Change Volume P/E Market Cap
152.35 152.50 152.38 -0.56 120K 31 12B

JKHY Dividend-Like Income Using Covered Calls

With JKHY at 152.38, 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% 4.57 1.3
5% 7.62 2.1
10% 15.24 4.2

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 JKHY Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Nov 16 160.00 1.20 29 4.1 7.50 (4.9%)
Dec 21 165.00 0.95 64 1.5 12.50 (8.2%)
5% Yield On JKHY Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Nov 16 160.00 1.20 29 4.1 7.50 (4.9%)
Dec 21 160.00 2.10 64 3.3 7.50 (4.9%)
10% Yield On JKHY Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Nov 16 155.00 2.85 29 9.8 2.50 (1.6%)
Dec 21 155.00 4.00 64 6.3 2.50 (1.6%)

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