IIIN Dividend

Insteel Industries, Inc dividend

Although IIIN has a dividend of 0.03 with an ex-dividend date of Mar 14, you can sell covered calls on Insteel Industries, Inc to create 12 extra dividend type payments per year to boost its yield. Let's look at some recent prices (last updated Thu 12:25 PM ET):

Insteel Industries, Inc (IIIN)
Bid Ask Last Change Volume P/E Market Cap
22.42 22.47 22.47 -0.09 20K 14 0.4B

IIIN Dividend-Like Income Using Covered Calls

With IIIN at 22.47, 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% 0.67 0.2
5% 1.12 0.3
10% 2.25 0.6

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 IIIN Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Mar 15 22.50 0.60 23 2.6 0.03 (0.1%)
Apr 18 25.00 0.30 57 0.5 2.53 (11.3%)
5% Yield On IIIN Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Mar 15 22.50 0.60 23 2.6 0.03 (0.1%)
Apr 18 25.00 0.30 57 0.5 2.53 (11.3%)
10% Yield On IIIN Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Mar 15 22.50 0.60 23 2.6 0.03 (0.1%)
Apr 18 22.50 1.20 57 2.1 0.03 (0.1%)

Want to increase dividends with covered calls?  Sign Up For A Free Trial

 
Top 10 Open Interest For Mar 15 Expiration     Top 5 High Yield
1.SPX dividend 6.EWZ dividend   1.ROKU dividend
2.EEM dividend 7.GE dividend   2.OLED dividend
3.SPY dividend 8.LLY dividend   3.FSLR dividend
4.QQQ dividend 9.BAC dividend   4.IQ dividend
5.FXI dividend 10.GLD dividend   5.CZR dividend

Want more examples? IHY Dividend | IIVI Dividend