IEP Dividend Type Payments

ICAHN ENTERPRISES dividend

Although IEP has no upcoming (meaning, Board-approved and announced) dividends, you can sell covered calls on ICAHN ENTERPRISES 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):

ICAHN ENTERPRISES (IEP)
Bid Ask Last Change Volume P/E Market Cap
78.65 80.00 79.34 -0.14 56K 11 15B

IEP Dividend-Like Income Using Covered Calls

With IEP at 79.34, 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% 2.38 0.7
5% 3.97 1.1
10% 7.93 2.2

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 IEP Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Sep 21 80.00 1.35 36 3.8 0.00 (0.0%)
Dec 21 85.00 1.30 127 1.0 5.00 (6.3%)
5% Yield On IEP Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Sep 21 80.00 1.35 36 3.8 0.00 (0.0%)
Dec 21 80.00 3.00 127 2.4 0.00 (0.0%)
10% Yield On IEP Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Sep 21 80.00 1.35 36 3.8 0.00 (0.0%)
Dec 21 80.00 3.00 127 2.4 0.00 (0.0%)

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Want more examples? IEO Dividend | IEUR Dividend