IEP Dividend Type Payments

Icahn Enterprises L.P. - Depositary Units representing Limited Partner I dividend

Although IEP has no upcoming (meaning, Board-approved and announced) dividends, you can sell covered calls on Icahn Enterprises L.P. - Depositary Units representing Limited Partner I 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 L.P. - Depositary Units representing Limited Partner I (IEP)
Bid Ask Last Change Volume P/E Market Cap
8.18 8.22 8.19 -0.05 508K - 4.5B

IEP Dividend-Like Income Using Covered Calls

With IEP at 8.19, 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% 0.25 0.1
5% 0.41 0.1
10% 0.82 0.2

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
Aug 15 10.00 0.05 50 0.1 1.78 (21.7%)
Sep 19 10.00 0.15 85 0.2 1.78 (21.7%)
5% Yield On IEP Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Sep 19 10.00 0.15 85 0.2 1.78 (21.7%)
Jan 16 10.00 0.30 204 0.1 1.78 (21.7%)

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