ICE Dividend Type Payments

Intercontinental Exchange, Inc dividend

Although ICE has no upcoming (meaning, Board-approved and announced) dividends, 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
72.09 75.74 73.39 +0.19 2.1M 21 42B

ICE Dividend-Like Income Using Covered Calls

With ICE at 73.39, 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% 2.20 0.6
5% 3.67 1.0
10% 7.34 2.0

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 77.50 0.45 58 0.8 1.76 (2.4%)
Jun 21 77.50 0.80 93 0.9 1.76 (2.4%)
5% Yield On ICE Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Sep 20 77.50 2.00 184 1.1 1.76 (2.4%)
Jan 17 77.50 3.50 303 1.2 1.76 (2.4%)

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Want more examples? ICD Dividend | ICF Dividend