IDT Dividend Type Payments

IDT Corporation Class B dividend

Although IDT has no upcoming (meaning, Board-approved and announced) dividends, you can sell covered calls on IDT Corporation Class B to create 12 extra dividend type payments per year to boost its yield. Let's look at some recent prices (last updated Tue 3:55 PM ET):

IDT Corporation Class B (IDT)
Bid Ask Last Change Volume P/E Market Cap
50.56 50.61 50.59 -0.54 99K 17 1.3B

IDT Dividend-Like Income Using Covered Calls

With IDT at 50.59, 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% 1.52 0.4
5% 2.53 0.7
10% 5.06 1.4

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:

3% Yield On IDT Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
May 15 55.00 2.70 193 1.4 4.39 (8.7%)
Jan 16 55.00 0.40 74 0.5 4.39 (8.7%)
5% Yield On IDT Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
May 15 55.00 2.70 193 1.4 4.39 (8.7%)
Apr 17 55.00 2.20 165 1.3 4.39 (8.7%)
10% Yield On IDT Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
May 15 55.00 2.70 193 1.4 4.39 (8.7%)
Jul 17 55.00 3.70 256 1.4 4.39 (8.7%)

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