JPM Dividend Type Payments

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 Wed 4:16 PM ET):

JP Morgan Chase & Co. (JPM)
Bid	Ask	Last	Change	Volume	P/E	Market Cap
191.45	192.00	191.86	+0.12	7.4M	12	554B

JPM Dividend-Like Income Using Covered Calls

With JPM at 191.86, 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%	5.76	1.6
5%	9.59	2.6
10%	19.19	5.3

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 3	192.50	0.82	3	27.3	0.50 (0.3%)
Jun 7	195.00	3.35	38	8.8	3.00 (1.6%)

5% Yield On JPM Using Covered Calls
Expiration	Strike	Call Bid	Days	Cents/Day	Upside Potential
May 3	192.50	0.82	3	27.3	0.50 (0.3%)
Jun 7	195.00	3.35	38	8.8	3.00 (1.6%)

10% Yield On JPM Using Covered Calls
Expiration	Strike	Call Bid	Days	Cents/Day	Upside Potential
May 3	192.50	0.82	3	27.3	0.50 (0.3%)
Jun 7	195.00	3.35	38	8.8	3.00 (1.6%)

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Want more examples? JPIN Dividend | JPMB Dividend