IEP Dividend Type Payments
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 Wed 4:16 PM ET):
| Icahn Enterprises L.P. - Depositary Units representing Limited Partner I (IEP) | ||||||
|---|---|---|---|---|---|---|
| Bid | Ask | Last | Change | Volume | P/E | Market Cap |
| 8.75 | 8.80 | 8.86 | +0.11 | 1.4M | - | 4.8B |
IEP Dividend-Like Income Using Covered Calls
With IEP at 8.86, 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% | 0.27 | 0.1 |
| 5% | 0.44 | 0.1 |
| 10% | 0.89 | 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 | 38 | 0.1 | 1.20 (13.5%) | |
| Jul 18 | 10.00 | 0.05 | 10 | 0.5 | 1.20 (13.5%) | |
| 5% Yield On IEP Using Covered Calls | ||||||
|---|---|---|---|---|---|---|
| Expiration | Strike | Call Bid | Days | Cents/Day | Upside Potential | |
| Aug 15 | 10.00 | 0.05 | 38 | 0.1 | 1.20 (13.5%) | |
| Jul 18 | 10.00 | 0.05 | 10 | 0.5 | 1.20 (13.5%) | |
| 10% Yield On IEP Using Covered Calls | ||||||
|---|---|---|---|---|---|---|
| Expiration | Strike | Call Bid | Days | Cents/Day | Upside Potential | |
| Jul 18 | 10.00 | 0.05 | 10 | 0.5 | 1.20 (13.5%) | |
| Sep 19 | 10.00 | 0.20 | 73 | 0.3 | 1.20 (13.5%) | |
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| Top 10 Open Interest For Jul 18 Expiration | Top 5 High Yield | |||||
|---|---|---|---|---|---|---|
| 1. | NVDA dividend | 6. | GLD dividend | 1. | RARE dividend | |
| 2. | SLV dividend | 7. | AAPL dividend | 2. | TMC dividend | |
| 3. | SPY dividend | 8. | TLT dividend | 3. | CELC dividend | |
| 4. | TSLA dividend | 9. | IBIT dividend | 4. | AEVA dividend | |
| 5. | IWM dividend | 10. | QQQ dividend | 5. | PRAX dividend | |
Want more examples? IEO Dividend | IEUR Dividend
