IIIN Dividend Type Payments

Insteel Industries, Inc. dividend

Although IIIN has no upcoming (meaning, Board-approved and announced) dividends, you can sell covered calls on Insteel Industries, 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):

Insteel Industries, Inc. (IIIN)
Bid Ask Last Change Volume P/E Market Cap
33.43 39.83 37.30 +0.69 95K 15 0.7B

IIIN Dividend-Like Income Using Covered Calls

With IIIN at 37.30, 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% 1.12 0.3
5% 1.87 0.5
10% 3.73 1.0

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 IIIN Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Mar 20 40.00 0.35 40 0.9 0.17 (0.5%)
Apr 17 40.00 1.10 68 1.6 0.17 (0.5%)
5% Yield On IIIN Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Mar 20 40.00 0.35 40 0.9 0.17 (0.5%)
Apr 17 40.00 1.10 68 1.6 0.17 (0.5%)
10% Yield On IIIN Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Apr 17 40.00 1.10 68 1.6 0.17 (0.5%)
Jul 17 40.00 2.30 159 1.4 0.17 (0.5%)

Want to increase dividends with covered calls?  Sign Up For A Free Trial

 
 
Top 10 Open Interest For Feb 20 Expiration     Top 5 High Yield
1.SLV dividend 6.QQQ dividend   1.OCUL dividend
2.NVDA dividend 7.SPY dividend   2.UPWK dividend
3.KWEB dividend 8.EWZ dividend   3.PINS dividend
4.IBIT dividend 9.TLT dividend   4.NET dividend
5.GLD dividend 10.CORZ dividend   5.APLD dividend

Want more examples? IIGD Dividend | IIIV Dividend