IBN Dividend Type Payments
Although IBN has no upcoming (meaning, Board-approved and announced) dividends, you can sell covered calls on ICICI Bank Limited to create 12 extra dividend type payments per year to boost its yield. Let's look at some recent prices (last updated Mon 12:05 PM ET):
ICICI Bank Limited (IBN) | ||||||
---|---|---|---|---|---|---|
Bid | Ask | Last | Change | Volume | P/E | Market Cap |
31.40 | 31.41 | 31.40 | +0.02 | 1.5M | 41 | 19B |
IBN Dividend-Like Income Using Covered Calls
With IBN at 31.40, 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% | 0.94 | 0.3 |
5% | 1.57 | 0.4 |
10% | 3.14 | 0.9 |
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 IBN Using Covered Calls | ||||||
---|---|---|---|---|---|---|
Expiration | Strike | Call Bid | Days | Cents/Day | Upside Potential | |
Nov 15 | 32.00 | 0.65 | 54 | 1.2 | 0.59 (1.9%) | |
Oct 18 | 32.00 | 0.30 | 26 | 1.2 | 0.59 (1.9%) |
5% Yield On IBN Using Covered Calls | ||||||
---|---|---|---|---|---|---|
Expiration | Strike | Call Bid | Days | Cents/Day | Upside Potential | |
Nov 15 | 32.00 | 0.65 | 54 | 1.2 | 0.59 (1.9%) | |
Oct 18 | 32.00 | 0.30 | 26 | 1.2 | 0.59 (1.9%) |
10% Yield On IBN Using Covered Calls | ||||||
---|---|---|---|---|---|---|
Expiration | Strike | Call Bid | Days | Cents/Day | Upside Potential | |
Nov 15 | 32.00 | 0.65 | 54 | 1.2 | 0.59 (1.9%) | |
Oct 18 | 32.00 | 0.30 | 26 | 1.2 | 0.59 (1.9%) |
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Top 10 Open Interest For Oct 18 Expiration | Top 5 High Yield | |||||
---|---|---|---|---|---|---|
1. | NVDA dividend | 6. | SLV dividend | 1. | WULF dividend | |
2. | IWM dividend | 7. | GLD dividend | 2. | DJT dividend | |
3. | SPY dividend | 8. | TLT dividend | 3. | CPRI dividend | |
4. | QQQ dividend | 9. | EEM dividend | 4. | BYND dividend | |
5. | HYG dividend | 10. | AAPL dividend | 5. | MSTR dividend |
Want more examples? IBM Dividend | IBND Dividend