IEP Dividend Type Payments
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 Wed 4:16 PM ET):
| ICAHN ENTERPRISES (IEP) | ||||||
|---|---|---|---|---|---|---|
| Bid | Ask | Last | Change | Volume | P/E | Market Cap |
| 68.50 | 69.98 | 69.67 | -0.43 | 63K | 9.3 | 13B |
IEP Dividend-Like Income Using Covered Calls
With IEP at 69.67, 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% | 2.09 | 0.6 |
| 5% | 3.48 | 1.0 |
| 10% | 6.97 | 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 IEP Using Covered Calls | ||||||
|---|---|---|---|---|---|---|
| Expiration | Strike | Call Bid | Days | Cents/Day | Upside Potential | |
| Oct 19 | 70.00 | 0.25 | 3 | 8.3 | 0.02 (0.0%) | |
| Nov 16 | 75.00 | 0.35 | 31 | 1.1 | 5.02 (7.2%) | |
| 5% Yield On IEP Using Covered Calls | ||||||
|---|---|---|---|---|---|---|
| Expiration | Strike | Call Bid | Days | Cents/Day | Upside Potential | |
| Oct 19 | 70.00 | 0.25 | 3 | 8.3 | 0.02 (0.0%) | |
| Nov 16 | 75.00 | 0.35 | 31 | 1.1 | 5.02 (7.2%) | |
| 10% Yield On IEP Using Covered Calls | ||||||
|---|---|---|---|---|---|---|
| Expiration | Strike | Call Bid | Days | Cents/Day | Upside Potential | |
| Oct 19 | 70.00 | 0.25 | 3 | 8.3 | 0.02 (0.0%) | |
| Nov 16 | 70.00 | 1.60 | 31 | 5.2 | 0.02 (0.0%) | |
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| Top 10 Open Interest For Oct 19 Expiration | Top 5 High Yield | |||||
|---|---|---|---|---|---|---|
| 1. | SPY dividend | 6. | PBR dividend | 1. | CLVS dividend | |
| 2. | SPX dividend | 7. | MU dividend | 2. | SKX dividend | |
| 3. | QQQ dividend | 8. | FXI dividend | 3. | CLF dividend | |
| 4. | EEM dividend | 9. | IWM dividend | 4. | CRBP dividend | |
| 5. | BAC dividend | 10. | AMD dividend | 5. | TLRY dividend | |
Want more examples? IEO Dividend | IEUR Dividend
