IBKR Dividend
Although IBKR has a dividend of 0.08 with an ex-dividend date of Feb 27, you can sell covered calls on Interactive Brokers Group, Inc. - Class A 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):
| Interactive Brokers Group, Inc. - Class A (IBKR) | ||||||
|---|---|---|---|---|---|---|
| Bid | Ask | Last | Change | Volume | P/E | Market Cap |
| 74.00 | 74.60 | 74.59 | +5.10 | 4.8M | 33 | 31B |
IBKR Dividend-Like Income Using Covered Calls
With IBKR at 74.59, 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% | 2.24 | 0.6 |
| 5% | 3.73 | 1.0 |
| 10% | 7.46 | 2.0 |
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 IBKR Using Covered Calls | ||||||
|---|---|---|---|---|---|---|
| Expiration | Strike | Call Bid | Days | Cents/Day | Upside Potential | |
| Feb 13 | 75.00 | 1.20 | 8 | 15.0 | 0.40 (0.5%) | |
| Feb 20 | 75.00 | 1.75 | 15 | 11.7 | 0.40 (0.5%) | |
| 5% Yield On IBKR Using Covered Calls | ||||||
|---|---|---|---|---|---|---|
| Expiration | Strike | Call Bid | Days | Cents/Day | Upside Potential | |
| Feb 13 | 75.00 | 1.20 | 8 | 15.0 | 0.40 (0.5%) | |
| Feb 20 | 75.00 | 1.75 | 15 | 11.7 | 0.40 (0.5%) | |
| 10% Yield On IBKR Using Covered Calls | ||||||
|---|---|---|---|---|---|---|
| Expiration | Strike | Call Bid | Days | Cents/Day | Upside Potential | |
| Feb 13 | 75.00 | 1.20 | 8 | 15.0 | 0.40 (0.5%) | |
| Feb 20 | 75.00 | 1.75 | 15 | 11.7 | 0.40 (0.5%) | |
Want to increase dividends with covered calls? Sign Up For A Free Trial
| Top 10 Open Interest For Feb 20 Expiration | Top 5 High Yield | |||||
|---|---|---|---|---|---|---|
| 1. | SLV dividend | 6. | QQQ dividend | 1. | OCUL dividend | |
| 2. | KWEB dividend | 7. | SPY dividend | 2. | APLD dividend | |
| 3. | NVDA dividend | 8. | EWZ dividend | 3. | AXTI dividend | |
| 4. | IBIT dividend | 9. | TLT dividend | 4. | U dividend | |
| 5. | GLD dividend | 10. | INTC dividend | 5. | QS dividend | |
Want more examples? IBIT Dividend | IBM Dividend
