IFF Dividend Type Payments

INTL FLAVORS dividend

Although IFF has no upcoming (meaning, Board-approved and announced) dividends, you can sell covered calls on INTL FLAVORS 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):

INTL FLAVORS (IFF)
Bid Ask Last Change Volume P/E Market Cap
123.15 144.90 139.12 +2.26 948K 36 15B

IFF Dividend-Like Income Using Covered Calls

With IFF at 139.12, 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% 4.17 1.1
5% 6.96 1.9
10% 13.91 3.8

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 IFF Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Nov 16 150.00 0.70 29 2.4 5.10 (3.7%)
Feb 15 155.00 1.55 120 1.3 10.10 (7.3%)
5% Yield On IFF Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Nov 16 150.00 0.70 29 2.4 5.10 (3.7%)
Feb 15 150.00 2.65 120 2.2 5.10 (3.7%)
10% Yield On IFF Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Nov 16 145.00 1.80 29 6.2 0.10 (0.1%)

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Want more examples? IEZ Dividend | IFGL Dividend