ICPT Dividend Type Payments

Intercept Pharmaceuticals, Inc dividend

Although ICPT has no upcoming (meaning, Board-approved and announced) dividends, you can sell covered calls on Intercept Pharmaceuticals, Inc to create 12 extra dividend type payments per year to boost its yield. Let's look at some recent prices (last updated Mon 4:16 PM ET):

Intercept Pharmaceuticals, Inc (ICPT)
Bid Ask Last Change Volume P/E Market Cap
66.09 70.50 69.28 -0.43 524K - 2.3B

ICPT Dividend-Like Income Using Covered Calls

With ICPT at 69.28, 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% 2.08 0.6
5% 3.46 0.9
10% 6.93 1.9

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 ICPT Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Jul 19 75.00 0.05 5 1.0 4.50 (6.5%)
Jul 26 82.00 0.10 12 0.8 11.50 (16.6%)
5% Yield On ICPT Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Jul 19 75.00 0.05 5 1.0 4.50 (6.5%)
Jul 26 76.50 0.15 12 1.3 6.00 (8.7%)
10% Yield On ICPT Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Jul 19 74.00 0.10 5 2.0 3.50 (5.1%)
Jul 26 75.50 0.30 12 2.5 5.00 (7.2%)

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