JPM Dividend

JP MORGAN CHASE dividend

Although JPM has a dividend of 0.56 with an ex-dividend date of Jul 5, you can sell covered calls on JP MORGAN CHASE 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):

JP MORGAN CHASE (JPM)
Bid Ask Last Change Volume P/E Market Cap
112.02 112.23 112.15 +1.02 8.1M 16 378B

JPM Dividend-Like Income Using Covered Calls

With JPM at 112.15, 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% 3.36 0.9
5% 5.61 1.5
10% 11.22 3.1

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 JPM Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
May 25 115.00 0.06 5 1.2 2.77 (2.5%)
Jun 1 115.00 0.22 12 1.8 2.77 (2.5%)
5% Yield On JPM Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
May 25 114.00 0.15 5 3.0 1.77 (1.6%)
Jun 1 115.00 0.22 12 1.8 2.77 (2.5%)
10% Yield On JPM Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
May 25 113.00 0.42 5 8.4 0.77 (0.7%)
Jun 1 114.00 0.44 12 3.7 1.77 (1.6%)

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