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 Tue 4:16 PM ET):
| Interactive Brokers Group, Inc. - Class A (IBKR) | ||||||
|---|---|---|---|---|---|---|
| Bid | Ask | Last | Change | Volume | P/E | Market Cap |
| 164.60 | 165.03 | 173.43 | +0.44 | 2.0M | 27 | 19B |
IBKR Dividend-Like Income Using Covered Calls
With IBKR at 173.43, 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% | 5.20 | 1.4 |
| 5% | 8.67 | 2.4 |
| 10% | 17.34 | 4.8 |
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 IBKR Using Covered Calls | ||||||
|---|---|---|---|---|---|---|
| Expiration | Strike | Call Bid | Days | Cents/Day | Upside Potential | |
| May 16 | 165.00 | 15.10 | 32 | 47.1 | 0.00 (0.0%) | |
| Apr 17 | 165.00 | 9.90 | 3 | 329.0 | 0.00 (0.0%) | |
| 5% Yield On IBKR Using Covered Calls | ||||||
|---|---|---|---|---|---|---|
| Expiration | Strike | Call Bid | Days | Cents/Day | Upside Potential | |
| May 16 | 165.00 | 15.10 | 32 | 47.1 | 0.00 (0.0%) | |
| Apr 17 | 165.00 | 9.90 | 3 | 329.0 | 0.00 (0.0%) | |
| 10% Yield On IBKR Using Covered Calls | ||||||
|---|---|---|---|---|---|---|
| Expiration | Strike | Call Bid | Days | Cents/Day | Upside Potential | |
| May 16 | 165.00 | 15.10 | 32 | 47.1 | 0.00 (0.0%) | |
| Apr 17 | 165.00 | 9.90 | 3 | 329.0 | 0.00 (0.0%) | |
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| Top 10 Open Interest For Apr 17 Expiration | Top 5 High Yield | |||||
|---|---|---|---|---|---|---|
| 1. | NVDA dividend | 6. | SLV dividend | 1. | IBKR dividend | |
| 2. | SPY dividend | 7. | TSLA dividend | 2. | MNMD dividend | |
| 3. | QQQ dividend | 8. | NIO dividend | 3. | ROKU dividend | |
| 4. | ASHR dividend | 9. | TLT dividend | 4. | UPST dividend | |
| 5. | IWM dividend | 10. | EEM dividend | 5. | UNH dividend | |
Want more examples? IBDV Dividend | IBM Dividend
