IBTX Dividend Type Payments
Although IBTX has no upcoming (meaning, Board-approved and announced) dividends, you can sell covered calls on Independent Bank Group, Inc to create 12 extra dividend type payments per year to boost its yield. Let's look at some recent prices (last updated Mon 4:16 PM ET):
Independent Bank Group, Inc (IBTX) | ||||||
---|---|---|---|---|---|---|
Bid | Ask | Last | Change | Volume | P/E | Market Cap |
23.51 | 61.00 | 58.80 | -0.03 | 129K | - | 2.4B |
IBTX Dividend-Like Income Using Covered Calls
With IBTX at 58.80, 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% | 1.76 | 0.5 |
5% | 2.94 | 0.8 |
10% | 5.88 | 1.6 |
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 IBTX Using Covered Calls | ||||||
---|---|---|---|---|---|---|
Expiration | Strike | Call Bid | Days | Cents/Day | Upside Potential | |
Jan 17 | 65.00 | 1.05 | 117 | 0.9 | 4.00 (6.8%) |
5% Yield On IBTX Using Covered Calls | ||||||
---|---|---|---|---|---|---|
Expiration | Strike | Call Bid | Days | Cents/Day | Upside Potential | |
Jan 17 | 65.00 | 1.05 | 117 | 0.9 | 4.00 (6.8%) |
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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. | CPRI dividend | |
3. | SPY dividend | 8. | TLT dividend | 3. | DJT dividend | |
4. | QQQ dividend | 9. | EEM dividend | 4. | MSTR dividend | |
5. | HYG dividend | 10. | AAPL dividend | 5. | SMCI dividend |
Want more examples? IBP Dividend | IBUY Dividend