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 Tue 4:16 PM ET):

Icahn Enterprises L.P. - Depositary Units representing Limited Partner I (IEP)
Bid Ask Last Change Volume P/E Market Cap
19.76 20.00 19.90 -0.14 271K - 5.9B

IEP Dividend-Like Income Using Covered Calls

With IEP at 19.90, 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% 0.60 0.2
5% 1.00 0.3
10% 1.99 0.5

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 29 20.00 0.30 4 7.5 0.00 (0.0%)
Oct 6 20.00 0.55 11 5.0 0.00 (0.0%)
5% Yield On IEP Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Sep 29 20.00 0.30 4 7.5 0.00 (0.0%)
Oct 6 20.00 0.55 11 5.0 0.00 (0.0%)
10% Yield On IEP Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Sep 29 20.00 0.30 4 7.5 0.00 (0.0%)
Oct 6 20.00 0.55 11 5.0 0.00 (0.0%)

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