KBR Dividend

KBR, Inc. dividend

Although KBR has a dividend of 0.17 with an ex-dividend date of Jun 13, you can sell covered calls on KBR, Inc. to create 12 extra dividend type payments per year to boost its yield. Let's look at some recent prices (last updated Thu 1:15 PM ET):

KBR, Inc. (KBR)
Bid Ask Last Change Volume P/E Market Cap
52.28 52.31 52.30 +0.23 371K 17 6.8B

KBR Dividend-Like Income Using Covered Calls

With KBR at 52.30, 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% 1.57 0.4
5% 2.62 0.7
10% 5.23 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 KBR Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Jul 18 52.50 1.45 58 2.5 0.19 (0.4%)
Sep 19 52.50 2.65 121 2.2 0.19 (0.4%)
5% Yield On KBR Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Jul 18 52.50 1.45 58 2.5 0.19 (0.4%)
Sep 19 52.50 2.65 121 2.2 0.19 (0.4%)
10% Yield On KBR Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Jul 18 52.50 1.45 58 2.5 0.19 (0.4%)
Sep 19 52.50 2.65 121 2.2 0.19 (0.4%)

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