Three Ways to Make Money

There are three ways to make extra income from Johnson & Johnson. One, which is “easy income”, is dividend income. I received my first dividend of $124 in March. The next dividend will be an increase to $130. I will receive that dividend if I still have my shares on May 27.

The second is by selling covered call options on your shares, assuming you have at least 100 shares. Our YTD covered call option income from JNJ is $314.92.

The third way is by selling cash covered put options. I did one put trade in January that gave me $51.32 in additional income.

Therefore, the total income thus far for my 100 shares of JNJ is $490.24. That is enough to pay half the cost of the new tires I put on our 2020 Ford Escape last week. By the way, the Fitchburg Firestone dealer did an excellent job.

Another Opinion from Seeking Alpha

“JNJ delivers solid performance from an operational perspective. It delivers incremental revenue growth, pays a solid dividend, has two major divisions that are quite distinct and provide useful diversification, is not too heavily indebted, tends to pay a fair price in the M&A market to acquire de-risked companies and products, and provides accurate guidance.” – Edmund Ingham, Seeking Alpha Analyst

StockRover Snapshots

It doesn’t hurt to get a “second opinion.” I often go to StockRover for that perspective. Here are two screen shots that help substantiate the value of owning JNJ. (I have a “Premium” StockRover subscription.)

Seeking Alpha Highlights

Finally, as you would expect, I look at Seeking Alpha before buying or selling an investment. JNJ has a very, very long history of paying increasing dividends. The payout ratio is perfect: 49.15%, and the yield is a decent 3.21%. Bear in mind that my “yield” is greater than that due to options trades.

Seeking Alpha Subscription Information

Of all of the resources I use, the most helpful is Seeking Alpha. If you decide to explore a Seeking Alpha subscription, please use the following link. Seeking Alpha

SEEKING ALPHA INFORMATION AND SUBSCRIPTION

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