KTOS Dividend Type Payments
Although KTOS has no upcoming (meaning, Board-approved and announced) dividends, you can sell covered calls on Kratos Defense & Security Solutions, 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):
| Kratos Defense & Security Solutions, Inc. (KTOS) | ||||||
|---|---|---|---|---|---|---|
| Bid | Ask | Last | Change | Volume | P/E | Market Cap |
| 33.33 | 33.92 | 33.37 | -0.28 | 1.3M | 337 | 5.1B |
KTOS Dividend-Like Income Using Covered Calls
With KTOS at 33.37, 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% | 1.00 | 0.3 |
| 5% | 1.67 | 0.5 |
| 10% | 3.34 | 0.9 |
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 KTOS Using Covered Calls | ||||||
|---|---|---|---|---|---|---|
| Expiration | Strike | Call Bid | Days | Cents/Day | Upside Potential | |
| Aug 15 | 35.00 | 4.10 | 197 | 2.1 | 1.08 (3.2%) | |
| May 16 | 35.00 | 2.55 | 106 | 2.4 | 1.08 (3.2%) | |
| 5% Yield On KTOS Using Covered Calls | ||||||
|---|---|---|---|---|---|---|
| Expiration | Strike | Call Bid | Days | Cents/Day | Upside Potential | |
| Aug 15 | 35.00 | 4.10 | 197 | 2.1 | 1.08 (3.2%) | |
| May 16 | 35.00 | 2.55 | 106 | 2.4 | 1.08 (3.2%) | |
| 10% Yield On KTOS Using Covered Calls | ||||||
|---|---|---|---|---|---|---|
| Expiration | Strike | Call Bid | Days | Cents/Day | Upside Potential | |
| Aug 15 | 35.00 | 4.10 | 197 | 2.1 | 1.08 (3.2%) | |
| May 16 | 35.00 | 2.55 | 106 | 2.4 | 1.08 (3.2%) | |
Want to increase dividends with covered calls? Sign Up For A Free Trial
| Top 10 Open Interest For Feb 21 Expiration | Top 5 High Yield | |||||
|---|---|---|---|---|---|---|
| 1. | NVDA dividend | 6. | TSLA dividend | 1. | LUMN dividend | |
| 2. | TLT dividend | 7. | SLV dividend | 2. | AFRM dividend | |
| 3. | SPY dividend | 8. | QQQ dividend | 3. | QBTS dividend | |
| 4. | IWM dividend | 9. | KWEB dividend | 4. | BYON dividend | |
| 5. | FXI dividend | 10. | IBIT dividend | 5. | SYM dividend | |
Want more examples? KTCC Dividend | KURA Dividend
