IP Dividend

Although IP has a dividend of 0.46 with an ex-dividend date of Nov 15, you can sell covered calls on International Paper Company to create 12 extra dividend type payments per year to boost its yield. Let's look at some recent prices (last updated Wed 2:10 PM ET):

International Paper Company (IP)
Bid	Ask	Last	Change	Volume	P/E	Market Cap
58.20	58.22	58.20	+0.64	4.1M	-	20B

IP Dividend-Like Income Using Covered Calls

With IP at 58.20, 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%	1.75	0.5
5%	2.91	0.8
10%	5.82	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 IP Using Covered Calls
Expiration	Strike	Call Bid	Days	Cents/Day	Upside Potential
Dec 6	58.00	1.60	31	4.5	0.00 (0.0%)
Nov 8	58.00	0.65	3	14.3	0.00 (0.0%)

5% Yield On IP Using Covered Calls
Expiration	Strike	Call Bid	Days	Cents/Day	Upside Potential
Dec 6	58.00	1.60	31	4.5	0.00 (0.0%)
Nov 8	58.00	0.65	3	14.3	0.00 (0.0%)

10% Yield On IP Using Covered Calls
Expiration	Strike	Call Bid	Days	Cents/Day	Upside Potential
Dec 6	58.00	1.60	31	4.5	0.00 (0.0%)
Nov 8	58.00	0.65	3	14.3	0.00 (0.0%)

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Top 10 Open Interest For Nov 15 Expiration				Top 5 High Yield
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Want more examples? IOVA Dividend | IPAC Dividend