IBKR Dividend

Although IBKR has a dividend of 0.10 with an ex-dividend date of Aug 30, 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 Fri 4:16 PM ET):

INTERACTIVE BROKERS GROUP (IBKR)
Bid	Ask	Last	Change	Volume	P/E	Market Cap
58.88	62.24	61.20	+0.35	276K	38	25B

IBKR Dividend-Like Income Using Covered Calls

With IBKR at 61.20, 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%	1.84	0.5
5%	3.06	0.8
10%	6.12	1.7

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
Sep 21	65.00	0.60	36	1.7	2.76 (4.5%)
Dec 21	70.00	1.05	127	0.8	7.76 (12.7%)

5% Yield On IBKR Using Covered Calls
Expiration	Strike	Call Bid	Days	Cents/Day	Upside Potential
Sep 21	65.00	0.60	36	1.7	2.76 (4.5%)
Dec 21	65.00	2.30	127	1.8	2.76 (4.5%)

10% Yield On IBKR Using Covered Calls
Expiration	Strike	Call Bid	Days	Cents/Day	Upside Potential
Dec 21	65.00	2.30	127	1.8	2.76 (4.5%)

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Top 10 Open Interest For Sep 21 Expiration				Top 5 High Yield
1.	EEM dividend	6.	GE dividend	1.	COTY dividend
2.	SPY dividend	7.	GLD dividend	2.	LB dividend
3.	SPX dividend	8.	FB dividend	3.	AKRX dividend
4.	QQQ dividend	9.	IWM dividend	4.	UVXY dividend
5.	XLF dividend	10.	GDX dividend	5.	GPS dividend

Want more examples? IBKC Dividend | IBLN Dividend