JNJ Dividend
Although JNJ has a dividend of 1.30 with an ex-dividend date of Feb 24, you can sell covered calls on Johnson & Johnson to create 12 extra dividend type payments per year to boost its yield. Let's look at some recent prices (last updated Fri 4:16 PM ET):
| Johnson & Johnson (JNJ) | ||||||
|---|---|---|---|---|---|---|
| Bid | Ask | Last | Change | Volume | P/E | Market Cap |
| 217.80 | 220.29 | 220.14 | +1.65 | 6.7M | 21 | 526B |
JNJ Dividend-Like Income Using Covered Calls
With JNJ at 220.14, 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% | 6.60 | 1.8 |
| 5% | 11.01 | 3.0 |
| 10% | 22.01 | 6.0 |
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 JNJ Using Covered Calls | ||||||
|---|---|---|---|---|---|---|
| Expiration | Strike | Call Bid | Days | Cents/Day | Upside Potential | |
| Feb 6 | 220.00 | 3.35 | 15 | 20.4 | 0.00 (0.0%) | |
| Feb 13 | 220.00 | 3.70 | 22 | 15.5 | 0.00 (0.0%) | |
| 5% Yield On JNJ Using Covered Calls | ||||||
|---|---|---|---|---|---|---|
| Expiration | Strike | Call Bid | Days | Cents/Day | Upside Potential | |
| Feb 6 | 220.00 | 3.35 | 15 | 20.4 | 0.00 (0.0%) | |
| Feb 13 | 220.00 | 3.70 | 22 | 15.5 | 0.00 (0.0%) | |
| 10% Yield On JNJ Using Covered Calls | ||||||
|---|---|---|---|---|---|---|
| Expiration | Strike | Call Bid | Days | Cents/Day | Upside Potential | |
| Feb 6 | 220.00 | 3.35 | 15 | 20.4 | 0.00 (0.0%) | |
| Feb 13 | 220.00 | 3.70 | 22 | 15.5 | 0.00 (0.0%) | |
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| Top 10 Open Interest For Feb 20 Expiration | Top 5 High Yield | |||||
|---|---|---|---|---|---|---|
| 1. | KWEB dividend | 6. | QQQ dividend | 1. | OCUL dividend | |
| 2. | SLV dividend | 7. | INTC dividend | 2. | ONDS dividend | |
| 3. | NVDA dividend | 8. | AAPL dividend | 3. | SOC dividend | |
| 4. | IBIT dividend | 9. | HYG dividend | 4. | HYMC dividend | |
| 5. | CORZ dividend | 10. | SPY dividend | 5. | QURE dividend | |
Want more examples? JMOM Dividend | JNK Dividend
