KW Dividend Type Payments

Kennedy-Wilson Holdings Inc. dividend

Although KW has no upcoming (meaning, Board-approved and announced) dividends, you can sell covered calls on Kennedy-Wilson 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):

Kennedy-Wilson Holdings Inc. (KW)
Bid Ask Last Change Volume P/E Market Cap
8.86 9.25 9.05 -0.11 695K - 2.5B

KW Dividend-Like Income Using Covered Calls

With KW at 9.05, 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% 0.27 0.1
5% 0.45 0.1
10% 0.91 0.2

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 KW Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Sep 19 10.00 0.50 232 0.2 0.75 (8.3%)
Jun 20 10.00 0.30 141 0.2 0.75 (8.3%)
5% Yield On KW Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Sep 19 10.00 0.50 232 0.2 0.75 (8.3%)
Jun 20 10.00 0.30 141 0.2 0.75 (8.3%)

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