KMT Dividend Type Payments

Kennametal Inc. dividend

Although KMT has no upcoming (meaning, Board-approved and announced) dividends, you can sell covered calls on Kennametal Inc. to create 12 extra dividend type payments per year to boost its yield. Let's look at some recent prices (last updated Wed 2:55 PM ET):

Kennametal Inc. (KMT)
Bid Ask Last Change Volume P/E Market Cap
28.62 28.64 28.63 -0.24 540K 24 2.2B

KMT Dividend-Like Income Using Covered Calls

With KMT at 28.63, 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% 0.86 0.2
5% 1.43 0.4
10% 2.86 0.8

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 KMT Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Jan 16 30.00 0.20 31 0.6 1.36 (4.8%)
Apr 17 30.00 0.85 122 0.7 1.36 (4.8%)
5% Yield On KMT Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Jan 16 30.00 0.20 31 0.6 1.36 (4.8%)
Apr 17 30.00 0.85 122 0.7 1.36 (4.8%)

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

 
 
Top 10 Open Interest For Dec 19 Expiration     Top 5 High Yield
1.NVDA dividend 6.TSLA dividend   1.EWTX dividend
2.SPY dividend 7.NFLX dividend   2.CTMX dividend
3.IBIT dividend 8.SLV dividend   3.ASPI dividend
4.QQQ dividend 9.XLF dividend   4.ALT dividend
5.TLT dividend 10.AMZN dividend   5.KMX dividend

Want more examples? KMPR Dividend | KMX Dividend