IBKR Dividend Type Payments
Although IBKR has no upcoming (meaning, Board-approved and announced) dividends, 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 |
130.00 | 133.97 | 133.02 | +0.57 | 1.2M | 21 | 14B |
IBKR Dividend-Like Income Using Covered Calls
With IBKR at 133.02, 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% | 3.99 | 1.1 |
5% | 6.65 | 1.8 |
10% | 13.30 | 3.6 |
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 IBKR Using Covered Calls | ||||||
---|---|---|---|---|---|---|
Expiration | Strike | Call Bid | Days | Cents/Day | Upside Potential | |
Nov 15 | 135.00 | 5.40 | 57 | 9.5 | 1.03 (0.8%) | |
Oct 18 | 135.00 | 3.60 | 29 | 12.4 | 1.03 (0.8%) |
5% Yield On IBKR Using Covered Calls | ||||||
---|---|---|---|---|---|---|
Expiration | Strike | Call Bid | Days | Cents/Day | Upside Potential | |
Nov 15 | 135.00 | 5.40 | 57 | 9.5 | 1.03 (0.8%) | |
Oct 18 | 135.00 | 3.60 | 29 | 12.4 | 1.03 (0.8%) |
10% Yield On IBKR Using Covered Calls | ||||||
---|---|---|---|---|---|---|
Expiration | Strike | Call Bid | Days | Cents/Day | Upside Potential | |
Nov 15 | 135.00 | 5.40 | 57 | 9.5 | 1.03 (0.8%) | |
Oct 18 | 135.00 | 3.60 | 29 | 12.4 | 1.03 (0.8%) |
Want to increase dividends with covered calls? Sign Up For A Free Trial
Top 10 Open Interest For Oct 18 Expiration | Top 5 High Yield | |||||
---|---|---|---|---|---|---|
1. | NVDA dividend | 6. | SLV dividend | 1. | RLAY dividend | |
2. | IWM dividend | 7. | GLD dividend | 2. | LUNR dividend | |
3. | SPY dividend | 8. | TLT dividend | 3. | MARA dividend | |
4. | QQQ dividend | 9. | EEM dividend | 4. | CPRI dividend | |
5. | HYG dividend | 10. | AAPL dividend | 5. | MBLY dividend |
Want more examples? IBDV Dividend | IBM Dividend