JPSE Dividend Type Payments
Although JPSE has no upcoming (meaning, Board-approved and announced) dividends, you can sell covered calls on JPMorgan Diversified Return U.S. Small Cap Equity ETF to create 12 extra dividend type payments per year to boost its yield. Let's look at some recent prices (last updated Wed 12:00 PM ET):
| JPMorgan Diversified Return U.S. Small Cap Equity ETF (JPSE) | ||||||
|---|---|---|---|---|---|---|
| Bid | Ask | Last | Change | Volume | P/E | Market Cap |
| 41.61 | 41.70 | 41.59 | -0.60 | 22K | - | 0.0B |
JPSE Dividend-Like Income Using Covered Calls
With JPSE at 41.59, 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% | 1.25 | 0.3 |
| 5% | 2.08 | 0.6 |
| 10% | 4.16 | 1.1 |
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 JPSE Using Covered Calls | ||||||
|---|---|---|---|---|---|---|
| Expiration | Strike | Call Bid | Days | Cents/Day | Upside Potential | |
| Sep 19 | 42.00 | 0.55 | 143 | 0.4 | 0.30 (0.7%) | |
| Dec 19 | 42.00 | 0.80 | 234 | 0.3 | 0.30 (0.7%) | |
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| Top 10 Open Interest For May 16 Expiration | Top 5 High Yield | |||||
|---|---|---|---|---|---|---|
| 1. | NVDA dividend | 6. | GLD dividend | 1. | ZETA dividend | |
| 2. | SPY dividend | 7. | IWM dividend | 2. | TDOC dividend | |
| 3. | TLT dividend | 8. | FXI dividend | 3. | ENVX dividend | |
| 4. | SLV dividend | 9. | SNAP dividend | 4. | RDDT dividend | |
| 5. | QQQ dividend | 10. | TSLA dividend | 5. | SMMT dividend | |
Want more examples? JPME Dividend | JPUS Dividend
