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 Thu 1:15 PM ET):

Johnson & Johnson (JNJ)
Bid Ask Last Change Volume P/E Market Cap
138.51 138.53 138.52 +1.23 2.0M 25 366B

JNJ Dividend-Like Income Using Covered Calls

With JNJ at 138.52, 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% 4.16 1.1
5% 6.93 1.9
10% 13.85 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
Mar 29 141.00 0.20 9 2.2 2.47 (1.8%)
Apr 5 142.00 0.22 16 1.4 3.47 (2.5%)
5% Yield On JNJ Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Mar 29 141.00 0.20 9 2.2 2.47 (1.8%)
Apr 5 141.00 0.41 16 2.6 2.47 (1.8%)
10% Yield On JNJ Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Mar 29 140.00 0.45 9 5.0 1.47 (1.1%)
Apr 5 140.00 0.72 16 4.5 1.47 (1.1%)

Want to increase dividends with covered calls?  Sign Up For A Free Trial

 
Top 10 Open Interest For Apr 18 Expiration     Top 5 High Yield
1.SPY dividend 6.FXI dividend   1.NKE dividend
2.EEM dividend 7.BMY dividend   2.MO dividend
3.SPX dividend 8.AAPL dividend   3.EA dividend
4.QQQ dividend 9.IWM dividend   4.AMD dividend
5.USO dividend 10.NIO dividend   5.CGC dividend

Want more examples? JNCE Dividend | JNK Dividend