ICE Dividend

Although ICE has a dividend of 0.45 with an ex-dividend date of Jun 13, you can sell covered calls on Intercontinental Exchange Inc. to create 12 extra dividend type payments per year to boost its yield. Let's look at some recent prices (last updated Thu 4:16 PM ET):

Intercontinental Exchange Inc. (ICE)
Bid	Ask	Last	Change	Volume	P/E	Market Cap
125.22	132.60	131.82	-0.75	1.9M	32	76B

ICE Dividend-Like Income Using Covered Calls

With ICE at 131.82, 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%	3.95	1.1
5%	6.59	1.8
10%	13.18	3.6

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 ICE Using Covered Calls
Expiration	Strike	Call Bid	Days	Cents/Day	Upside Potential
May 17	135.00	1.70	23	7.4	2.40 (1.8%)
Jun 21	135.00	2.80	58	4.8	2.40 (1.8%)

5% Yield On ICE Using Covered Calls
Expiration	Strike	Call Bid	Days	Cents/Day	Upside Potential
May 17	135.00	1.70	23	7.4	2.40 (1.8%)
Jun 21	135.00	2.80	58	4.8	2.40 (1.8%)

10% Yield On ICE Using Covered Calls
Expiration	Strike	Call Bid	Days	Cents/Day	Upside Potential
May 17	135.00	1.70	23	7.4	2.40 (1.8%)
Jun 21	135.00	2.80	58	4.8	2.40 (1.8%)

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Want more examples? ICD Dividend | ICF Dividend