JPM Dividend Type Payments

JP Morgan Chase & Co. dividend

Although JPM has no upcoming (meaning, Board-approved and announced) dividends, you can sell covered calls on JP Morgan Chase & Co. 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 & Co. (JPM)
Bid Ask Last Change Volume P/E Market Cap
113.47 114.03 113.60 +0.14 7.1M 13 368B

JPM Dividend-Like Income Using Covered Calls

With JPM at 113.60, 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% 3.41 0.9
5% 5.68 1.6
10% 11.36 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
Apr 26 117.00 0.05 5 1.0 2.97 (2.6%)
May 3 117.00 0.21 12 1.8 2.97 (2.6%)
5% Yield On JPM Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Apr 26 116.00 0.10 5 2.0 1.97 (1.7%)
May 3 117.00 0.21 12 1.8 2.97 (2.6%)
10% Yield On JPM Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Apr 26 115.00 0.27 5 5.4 0.97 (0.9%)
May 3 116.00 0.39 12 3.3 1.97 (1.7%)

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Top 10 Open Interest For May 17 Expiration     Top 5 High Yield
1.SPY dividend 6.QQQ dividend   1.SNAP dividend
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4.FXI dividend 9.XOP dividend   4.TSLA dividend
5.SPX dividend 10.XLF dividend   5.F dividend

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