IAC Dividend Type Payments

Although IAC has no upcoming (meaning, Board-approved and announced) dividends, you can sell covered calls on IAC/InterActiveCorp 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):

IAC/InterActiveCorp (IAC)
Bid Ask Last Change Volume P/E Market Cap
207.11 245.00 232.54 +1.15 476K 34 20B

IAC Dividend-Like Income Using Covered Calls

With IAC at 232.54, 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% 6.98 1.9
5% 11.63 3.2
10% 23.25 6.4

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 IAC Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Aug 16 260.00 1.10 31 3.5 15.00 (6.5%)
Oct 18 270.00 2.50 94 2.7 25.00 (10.8%)
5% Yield On IAC Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Aug 16 260.00 1.10 31 3.5 15.00 (6.5%)
Oct 18 260.00 4.70 94 5.0 15.00 (6.5%)
10% Yield On IAC Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Aug 16 250.00 2.75 31 8.9 5.00 (2.2%)
Oct 18 250.00 7.00 94 7.4 5.00 (2.2%)

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