JNJ Dividend Type Payments

Johnson & Johnson dividend

Although JNJ has no upcoming (meaning, Board-approved and announced) dividends, 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 Mon 4:16 PM ET):

Johnson & Johnson (JNJ)
Bid Ask Last Change Volume P/E Market Cap
139.00 140.03 139.44 -0.65 5.3M 26 372B

JNJ Dividend-Like Income Using Covered Calls

With JNJ at 139.44, 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% 4.18 1.1
5% 6.97 1.9
10% 13.94 3.8

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
Jun 21 143.00 0.07 5 1.4 2.97 (2.1%)
Jun 28 144.00 0.14 12 1.2 3.97 (2.8%)
5% Yield On JNJ Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Jun 21 142.00 0.16 5 3.2 1.97 (1.4%)
Jun 28 143.00 0.29 12 2.4 2.97 (2.1%)
10% Yield On JNJ Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Jun 21 141.00 0.37 5 7.4 0.97 (0.7%)
Jun 28 142.00 0.55 12 4.6 1.97 (1.4%)

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