KNX Dividend

Although KNX has a dividend of 0.18 with an ex-dividend date of Jun 9, you can sell covered calls on Knight-Swift Transportation Holdings Inc. 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):

Knight-Swift Transportation Holdings Inc. (KNX)
Bid	Ask	Last	Change	Volume	P/E	Market Cap
36.00	44.87	42.82	-0.67	1.3M	46	7.0B

KNX Dividend-Like Income Using Covered Calls

With KNX at 42.82, 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%	1.28	0.4
5%	2.14	0.6
10%	4.28	1.2

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 KNX Using Covered Calls
Expiration	Strike	Call Bid	Days	Cents/Day	Upside Potential
Aug 15	45.00	1.35	85	1.6	0.13 (0.3%)
Jul 18	45.00	1.55	57	2.7	0.13 (0.3%)

5% Yield On KNX Using Covered Calls
Expiration	Strike	Call Bid	Days	Cents/Day	Upside Potential
Aug 15	45.00	1.35	85	1.6	0.13 (0.3%)
Jul 18	45.00	1.55	57	2.7	0.13 (0.3%)

10% Yield On KNX Using Covered Calls
Expiration	Strike	Call Bid	Days	Cents/Day	Upside Potential
Aug 15	45.00	1.35	85	1.6	0.13 (0.3%)
Jul 18	45.00	1.55	57	2.7	0.13 (0.3%)

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Want more examples? KNSL Dividend | KO Dividend