IBOC Dividend
Although IBOC has a dividend of 0.73 with an ex-dividend date of Feb 13, you can sell covered calls on International Bancshares Corporation 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):
| International Bancshares Corporation (IBOC) | ||||||
|---|---|---|---|---|---|---|
| Bid | Ask | Last | Change | Volume | P/E | Market Cap |
| 30.30 | 76.00 | 74.58 | +0.43 | 357K | 11 | 4.6B |
IBOC Dividend-Like Income Using Covered Calls
With IBOC at 74.58, 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 IBOC Using Covered Calls | ||||||
|---|---|---|---|---|---|---|
| Expiration | Strike | Call Bid | Days | Cents/Day | Upside Potential | |
| Aug 21 | 80.00 | 1.65 | 197 | 0.8 | 4.00 (5.4%) | |
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| 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? IBND Dividend | IBP Dividend
