IBKR Dividend Type Payments

Interactive Brokers Group, Inc dividend

Although IBKR has no upcoming (meaning, Board-approved and announced) dividends, you can sell covered calls on Interactive Brokers Group, Inc 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 (IBKR)
Bid Ask Last Change Volume P/E Market Cap
49.60 51.48 50.67 +0.82 570K - 0.0B

IBKR Dividend-Like Income Using Covered Calls

With IBKR at 50.67, 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% 1.52 0.4
5% 2.53 0.7
10% 5.07 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
Apr 18 55.00 0.25 24 1.0 3.52 (6.9%)
May 17 55.00 0.70 53 1.3 3.52 (6.9%)
5% Yield On IBKR Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Apr 18 55.00 0.25 24 1.0 3.52 (6.9%)
May 17 55.00 0.70 53 1.3 3.52 (6.9%)

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Top 10 Open Interest For Apr 18 Expiration     Top 5 High Yield
1.SPY dividend 6.USO dividend   1.LULU dividend
2.EEM dividend 7.AAPL dividend   2.NBEV dividend
3.SPX dividend 8.BMY dividend   3.BB dividend
4.QQQ dividend 9.EWZ dividend   4.SPWR dividend
5.FXI dividend 10.IWM dividend   5.ROKU dividend

Want more examples? IBKC Dividend | IBM Dividend