Calculate your potential monthly dividend income from JPMorgan Nasdaq Equity Premium Income ETF (JEPQ)
📊 JEPQ Dividend Income Calculator
No – Take Cash Dividends
Yes – Reinvest Dividends
💰 Your JEPQ Dividend Projection
Total Investment
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Monthly Dividend (Gross)
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Monthly Dividend (After Tax)
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Annual Dividend (Gross)
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Annual Dividend (After Tax)
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Effective Yield
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Total Dividends Over Period
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Projected Portfolio Value
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What is JEPQ?
JEPQ (JPMorgan Nasdaq Equity Premium Income ETF) is an actively managed exchange-traded fund that seeks to deliver monthly income by investing in Nasdaq 100 stocks while selling covered call options. Launched in May 2022, JEPQ has quickly become one of the most popular income-generating ETFs for investors seeking high monthly distributions.
The fund combines equity exposure to technology-heavy Nasdaq 100 companies like Apple, Microsoft, Amazon, and Nvidia with an equity-linked notes (ELN) strategy that generates premium income through options. This hybrid approach allows JEPQ to offer significantly higher yields than traditional dividend ETFs.
Key Fact: JEPQ typically pays monthly dividends with yields ranging from 8% to 12% annually, making it one of the highest-yielding tech-focused ETFs available to retail investors.
How JEPQ Dividends Work
Understanding JEPQ's dividend structure is essential for accurately projecting your income:
📅 Monthly Distributions
JEPQ pays dividends monthly, typically on the first week of each month. This provides consistent cash flow for income-focused investors.
💵 Variable Payouts
Unlike fixed-rate bonds, JEPQ dividends fluctuate based on options premium collected and market volatility conditions.
📊 Options Premium Income
A significant portion of the dividend comes from selling covered call options on the portfolio holdings, generating premium income.
🏦 Tax Treatment
JEPQ dividends are generally taxed as ordinary income, not qualified dividends, due to the options strategy employed.
JEPQ Dividend History
Here's a sample of JEPQ's recent monthly dividend payments to help you understand the typical distribution range:
Month
Dividend Per Share
Approximate Yield
January 2024
$0.4422
9.8%
December 2023
$0.5125
11.2%
November 2023
$0.4689
10.3%
October 2023
$0.4516
10.1%
September 2023
$0.4347
9.7%
Using the JEPQ Dividend Calculator
Our calculator helps you project potential income from your JEPQ investment. Here's how to use it effectively:
Enter Your Shares: Input the number of JEPQ shares you own or plan to purchase.
Current Share Price: Use the current market price (updates daily) for accurate calculations.
Monthly Dividend: Enter the recent monthly dividend per share (typically $0.40-$0.55).
Annual Yield: This auto-calculates but can be adjusted based on your expectations.
DRIP Option: Choose whether to reinvest dividends to see compounding effects.
Tax Rate: Enter your marginal tax rate for after-tax income projections.
Example JEPQ Investment Scenarios
Scenario 1: Income-Focused Retiree
A retiree with $100,000 invested in JEPQ at $55 per share would own approximately 1,818 shares. At a $0.45 monthly dividend, they would receive:
Monthly gross income: $818.18
Annual gross income: $9,818.16
After 15% tax: $8,345.44 annually
Scenario 2: Young Investor with DRIP
A 30-year-old investing $20,000 in JEPQ with dividend reinvestment over 20 years at a 9.5% yield could potentially grow their position significantly through the power of compounding.
JEPQ vs. Other Income ETFs
ETF
Focus
Approximate Yield
Expense Ratio
JEPQ
Nasdaq 100 + Options
9-11%
0.35%
JEPI
S&P 500 + Options
7-9%
0.35%
QYLD
Nasdaq 100 Covered Calls
11-13%
0.60%
SCHD
Dividend Growth Stocks
3-4%
0.06%
Important Considerations for JEPQ Investors
⚠️ Limited Upside
The covered call strategy caps potential gains during strong bull markets, as the fund may have to sell shares at strike prices below market value.
📉 Downside Risk
JEPQ is not protected from market downturns. The fund holds equities that can decline in value during market corrections.
💼 Tax Efficiency
Best held in tax-advantaged accounts (IRA, 401k) due to ordinary income tax treatment of distributions.
📊 NAV Erosion
High distributions may include return of capital, which can reduce net asset value over time if not managed properly.
Frequently Asked Questions
When does JEPQ pay dividends?
JEPQ pays dividends monthly, typically around the first week of each month. The ex-dividend date usually falls at the end of the previous month.
Is JEPQ a good long-term investment?
JEPQ can be suitable for income-focused investors who prioritize current yield over capital appreciation. However, the capped upside may limit total returns compared to pure equity investments during bull markets.
How is JEPQ taxed?
JEPQ dividends are primarily taxed as ordinary income rather than qualified dividends. This makes tax-advantaged accounts like IRAs ideal for holding JEPQ.
Can I reinvest JEPQ dividends?
Yes, most brokerages offer DRIP (Dividend Reinvestment Plan) for JEPQ, allowing you to automatically reinvest dividends to purchase additional shares.
⚠️ Investment Disclaimer
This calculator provides estimates for educational purposes only. Actual dividends may vary based on market conditions, fund performance, and distribution policies. Past performance does not guarantee future results. JEPQ's dividends are not guaranteed and may fluctuate significantly. Consult a qualified financial advisor before making investment decisions.
function calculateDividends() {
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var sharePrice = parseFloat(document.getElementById('sharePrice').value);
var monthlyDividend = parseFloat(document.getElementById('monthlyDividend').value);
var dividendYield = parseFloat(document.getElementById('dividendYield').value);
var reinvest = document.getElementById('reinvestDividends').value;
var holdingPeriod = parseInt(document.getElementById('holdingPeriod').value);
var taxRate = parseFloat(document.getElementById('taxRate').value);
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var totalInvestment = shares * sharePrice;
var monthlyIncome = shares * monthlyDividend;
var annualIncome = monthlyIncome * 12;
var taxMultiplier = 1 – (taxRate / 100);
var monthlyAfterTax = monthlyIncome * taxMultiplier;
var annualAfterTax = annualIncome * taxMultiplier;
var effectiveYield = (annualIncome / totalInvestment) * 100;
var totalDividends = 0;
var portfolioValue = totalInvestment;
var currentShares = shares;
var monthlyYield = dividendYield / 100 / 12;
if (reinvest === 'yes') {
for (var year = 0; year < holdingPeriod; year++) {
for (var month = 0; month < 12; month++) {
var dividend = currentShares * monthlyDividend;
var afterTaxDividend = dividend * taxMultiplier;
totalDividends += dividend;
var newShares = afterTaxDividend / sharePrice;
currentShares += newShares;
}
}
portfolioValue = currentShares * sharePrice;
} else {
totalDividends = annualIncome * holdingPeriod;
portfolioValue = totalInvestment + (annualAfterTax * holdingPeriod);
}
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document.getElementById('effectiveYield').textContent = effectiveYield.toFixed(2) + '%';
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