IBKR 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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| Top 10 Open Interest For Aug 15 Expiration | Top 5 High Yield | |||||
|---|---|---|---|---|---|---|
| 1. | SLV dividend | 6. | IBIT dividend | 1. | CELC dividend | |
| 2. | NVDA dividend | 7. | TSLA dividend | 2. | CRML dividend | |
| 3. | GLD dividend | 8. | AMZN dividend | 3. | NFE dividend | |
| 4. | IWM dividend | 9. | AAPL dividend | 4. | ARES dividend | |
| 5. | SPY dividend | 10. | SMCI dividend | 5. | MBX dividend | |
Want more examples? IBDV Dividend | IBM Dividend
