IIPR Dividend Type Payments
Although IIPR has no upcoming (meaning, Board-approved and announced) dividends, you can sell covered calls on Innovative Industrial Properties, Inc. 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):
| Innovative Industrial Properties, Inc. (IIPR) |
|---|
| Bid |
Ask |
Last |
Change |
Volume |
P/E |
Market Cap |
| 101.59 |
110.00 |
104.43 |
-0.38 |
163K |
18 |
3.0B |
IIPR Dividend-Like Income Using Covered Calls
With IIPR at 104.43, 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% |
3.13 |
0.9 |
| 5% |
5.22 |
1.4 |
| 10% |
10.44 |
2.9 |
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 IIPR Using Covered Calls |
|---|
| Expiration |
Strike |
Call Bid |
Days |
Cents/Day |
Upside Potential |
| May 17 |
110.00 |
0.10 |
8 |
1.3 |
0.00 (0.0%) |
| Oct 18 |
110.00 |
4.00 |
162 |
2.5 |
0.00 (0.0%) |
| 5% Yield On IIPR Using Covered Calls |
|---|
| Expiration |
Strike |
Call Bid |
Days |
Cents/Day |
Upside Potential |
| Oct 18 |
110.00 |
4.00 |
162 |
2.5 |
0.00 (0.0%) |
| Jul 19 |
110.00 |
2.50 |
71 |
3.5 |
0.00 (0.0%) |
| 10% Yield On IIPR Using Covered Calls |
|---|
| Expiration |
Strike |
Call Bid |
Days |
Cents/Day |
Upside Potential |
| Jul 19 |
110.00 |
2.50 |
71 |
3.5 |
0.00 (0.0%) |
| Dec 20 |
110.00 |
7.40 |
225 |
3.3 |
0.00 (0.0%) |
Want to increase dividends with covered calls? Sign Up For A Free Trial
