IEP Dividend Type Payments

Icahn Enterprises L.P. - Depositary Units representing Limited Partner I dividend

Although IEP has no upcoming (meaning, Board-approved and announced) dividends, you can sell covered calls on Icahn Enterprises L.P. - Depositary Units representing Limited Partner I to create 12 extra dividend type payments per year to boost its yield. Let's look at some recent prices (last updated Fri 4:16 PM ET):

Icahn Enterprises L.P. - Depositary Units representing Limited Partner I (IEP)
Bid Ask Last Change Volume P/E Market Cap
10.59 10.62 10.55 -0.60 2.6M - 5.0B

IEP Dividend-Like Income Using Covered Calls

With IEP at 10.55, 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% 0.32 0.1
5% 0.53 0.1
10% 1.06 0.3

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 IEP Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Oct 4 11.00 0.65 29 2.2 0.38 (3.6%)
Oct 11 11.00 0.70 36 1.9 0.38 (3.6%)
5% Yield On IEP Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Oct 4 11.00 0.65 29 2.2 0.38 (3.6%)
Oct 11 11.00 0.70 36 1.9 0.38 (3.6%)
10% Yield On IEP Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Oct 4 11.00 0.65 29 2.2 0.38 (3.6%)
Oct 11 11.00 0.70 36 1.9 0.38 (3.6%)

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