IBP Dividend Type Payments
Although IBP has no upcoming (meaning, Board-approved and announced) dividends, you can sell covered calls on Installed Building Products, Inc. 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):
| Installed Building Products, Inc. (IBP) | ||||||
|---|---|---|---|---|---|---|
| Bid | Ask | Last | Change | Volume | P/E | Market Cap |
| 269.50 | 435.18 | 269.50 | -1.97 | 212K | 30 | 7.4B |
IBP Dividend-Like Income Using Covered Calls
With IBP at 269.50, 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% | 8.09 | 2.2 |
| 5% | 13.48 | 3.7 |
| 10% | 26.95 | 7.4 |
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:
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| Top 10 Open Interest For Nov 21 Expiration | Top 5 High Yield | |||||
|---|---|---|---|---|---|---|
| 1. | IBIT dividend | 6. | TLT dividend | 1. | GHRS dividend | |
| 2. | KVUE dividend | 7. | INTC dividend | 2. | DNUT dividend | |
| 3. | NVDA dividend | 8. | EEM dividend | 3. | IREN dividend | |
| 4. | SLV dividend | 9. | HYG dividend | 4. | SOUN dividend | |
| 5. | GLD dividend | 10. | QQQ dividend | 5. | BHVN dividend | |
Want more examples? IBOC Dividend | IBUY Dividend
