IBKR Dividend

Interactive Brokers Group, Inc. - Class A dividend

Although IBKR has a dividend of 0.08 with an ex-dividend date of Aug 29, 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 Fri 4:16 PM ET):

Interactive Brokers Group, Inc. - Class A (IBKR)
Bid Ask Last Change Volume P/E Market Cap
63.40 63.63 64.05 +4.62 14.8M 33 26B

IBKR Dividend-Like Income Using Covered Calls

With IBKR at 64.05, 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% 1.92 0.5
5% 3.20 0.9
10% 6.41 1.8

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
Aug 15 65.00 2.05 29 7.1 1.37 (2.1%)
Sep 19 65.00 3.30 64 5.2 1.37 (2.1%)
5% Yield On IBKR Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Aug 15 65.00 2.05 29 7.1 1.37 (2.1%)
Sep 19 65.00 3.30 64 5.2 1.37 (2.1%)
10% Yield On IBKR Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Aug 15 65.00 2.05 29 7.1 1.37 (2.1%)
Sep 19 65.00 3.30 64 5.2 1.37 (2.1%)

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