IBKR Dividend
Although IBKR has a dividend of 0.25 with an ex-dividend date of May 31, you can sell covered calls on Interactive Brokers Group, Inc. - Class A 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, Inc. - Class A (IBKR) | ||||||
---|---|---|---|---|---|---|
Bid | Ask | Last | Change | Volume | P/E | Market Cap |
113.80 | 114.69 | 114.69 | +1.57 | 1.0M | 20 | 12B |
IBKR Dividend-Like Income Using Covered Calls
With IBKR at 114.69, 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% | 3.44 | 0.9 |
5% | 5.73 | 1.6 |
10% | 11.47 | 3.1 |
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 IBKR Using Covered Calls | ||||||
---|---|---|---|---|---|---|
Expiration | Strike | Call Bid | Days | Cents/Day | Upside Potential | |
May 17 | 115.00 | 2.90 | 25 | 11.6 | 0.31 (0.3%) | |
Jun 21 | 115.00 | 4.70 | 60 | 7.8 | 0.31 (0.3%) |
5% Yield On IBKR Using Covered Calls | ||||||
---|---|---|---|---|---|---|
Expiration | Strike | Call Bid | Days | Cents/Day | Upside Potential | |
May 17 | 115.00 | 2.90 | 25 | 11.6 | 0.31 (0.3%) | |
Jun 21 | 115.00 | 4.70 | 60 | 7.8 | 0.31 (0.3%) |
10% Yield On IBKR Using Covered Calls | ||||||
---|---|---|---|---|---|---|
Expiration | Strike | Call Bid | Days | Cents/Day | Upside Potential | |
May 17 | 115.00 | 2.90 | 25 | 11.6 | 0.31 (0.3%) | |
Jun 21 | 115.00 | 4.70 | 60 | 7.8 | 0.31 (0.3%) |
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Top 10 Open Interest For May 17 Expiration | Top 5 High Yield | |||||
---|---|---|---|---|---|---|
1. | IWM dividend | 6. | KWEB dividend | 1. | CIFR dividend | |
2. | HYG dividend | 7. | EEM dividend | 2. | FSLY dividend | |
3. | SPY dividend | 8. | TSLA dividend | 3. | ENPH dividend | |
4. | QQQ dividend | 9. | SLV dividend | 4. | SNAP dividend | |
5. | FXI dividend | 10. | EWZ dividend | 5. | CGC dividend |
Want more examples? IBIO Dividend | IBM Dividend