IBKR Dividend

INTERACTIVE BROKERS GROUP dividend

Although IBKR has a dividend of 0.10 with an ex-dividend date of Nov 29, you can sell covered calls on INTERACTIVE BROKERS GROUP to create 12 extra dividend type payments per year to boost its yield. Let's look at some recent prices (last updated Tue 4:16 PM ET):

INTERACTIVE BROKERS GROUP (IBKR)
Bid Ask Last Change Volume P/E Market Cap
49.46 50.61 49.55 -0.58 896K 31 23B

IBKR Dividend-Like Income Using Covered Calls

With IBKR at 49.55, 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% 1.49 0.4
5% 2.48 0.7
10% 4.96 1.4

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 IBKR Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Nov 16 55.00 0.30 25 1.2 4.39 (8.9%)
Dec 21 60.00 0.30 60 0.5 9.39 (19.0%)
5% Yield On IBKR Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Nov 16 55.00 0.30 25 1.2 4.39 (8.9%)
Dec 21 55.00 0.85 60 1.4 4.39 (8.9%)
10% Yield On IBKR Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Dec 21 55.00 0.85 60 1.4 4.39 (8.9%)
Mar 15 55.00 2.00 144 1.4 4.39 (8.9%)

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Top 10 Open Interest For Nov 16 Expiration     Top 5 High Yield
1.SPY dividend 6.QQQ dividend   1.SNAP dividend
2.EWZ dividend 7.IWM dividend   2.AMD dividend
3.EEM dividend 8.FXI dividend   3.TWTR dividend
4.PBR dividend 9.VXX dividend   4.TSLA dividend
5.SPX dividend 10.BAC dividend   5.UVXY dividend

Want more examples? IBKC Dividend | IBLN Dividend