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 Thu 4:16 PM ET):
| Installed Building Products, Inc. (IBP) | ||||||
|---|---|---|---|---|---|---|
| Bid | Ask | Last | Change | Volume | P/E | Market Cap |
| 129.93 | 233.46 | 158.24 | +2.30 | 358K | 17 | 4.3B |
IBP Dividend-Like Income Using Covered Calls
With IBP at 158.24, 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% | 4.75 | 1.3 |
| 5% | 7.91 | 2.2 |
| 10% | 15.82 | 4.3 |
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 IBP Using Covered Calls | ||||||
|---|---|---|---|---|---|---|
| Expiration | Strike | Call Bid | Days | Cents/Day | Upside Potential | |
| Dec 19 | 240.00 | 3.60 | 247 | 1.5 | 6.54 (4.1%) | |
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| Top 10 Open Interest For May 16 Expiration | Top 5 High Yield | |||||
|---|---|---|---|---|---|---|
| 1. | NVDA dividend | 6. | IWM dividend | 1. | STLA dividend | |
| 2. | SPY dividend | 7. | GLD dividend | 2. | UPST dividend | |
| 3. | TLT dividend | 8. | FXI dividend | 3. | NBIS dividend | |
| 4. | SLV dividend | 9. | TSLA dividend | 4. | HOOD dividend | |
| 5. | QQQ dividend | 10. | INTC dividend | 5. | RIOT dividend | |
Want more examples? IBOC Dividend | IBUY Dividend
