KALU Dividend Type Payments
Although KALU has no upcoming (meaning, Board-approved and announced) dividends, you can sell covered calls on Kaiser Aluminum Corporation to create 12 extra dividend type payments per year to boost its yield. Let's look at some recent prices (last updated Mon 10:05 AM ET):
| Kaiser Aluminum Corporation (KALU) | ||||||
|---|---|---|---|---|---|---|
| Bid | Ask | Last | Change | Volume | P/E | Market Cap |
| 80.70 | 81.98 | 80.79 | +0.16 | 2K | 28 | 1.3B |
KALU Dividend-Like Income Using Covered Calls
With KALU at 80.79, 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% | 2.42 | 0.7 |
| 5% | 4.04 | 1.1 |
| 10% | 8.08 | 2.2 |
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 KALU Using Covered Calls | ||||||
|---|---|---|---|---|---|---|
| Expiration | Strike | Call Bid | Days | Cents/Day | Upside Potential | |
| Dec 20 | 100.00 | 0.25 | 33 | 0.8 | 18.02 (22.3%) | |
| Jan 17 | 85.00 | 1.00 | 61 | 1.6 | 3.02 (3.7%) | |
| 5% Yield On KALU Using Covered Calls | ||||||
|---|---|---|---|---|---|---|
| Expiration | Strike | Call Bid | Days | Cents/Day | Upside Potential | |
| Jan 17 | 85.00 | 1.00 | 61 | 1.6 | 3.02 (3.7%) | |
| Jun 20 | 85.00 | 5.00 | 215 | 2.3 | 3.02 (3.7%) | |
| 10% Yield On KALU Using Covered Calls | ||||||
|---|---|---|---|---|---|---|
| Expiration | Strike | Call Bid | Days | Cents/Day | Upside Potential | |
| Jun 20 | 85.00 | 5.00 | 215 | 2.3 | 3.02 (3.7%) | |
| Mar 21 | 85.00 | 3.00 | 124 | 2.4 | 3.02 (3.7%) | |
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| Top 10 Open Interest For Dec 20 Expiration | Top 5 High Yield | |||||
|---|---|---|---|---|---|---|
| 1. | NVDA dividend | 6. | QQQ dividend | 1. | SAVA dividend | |
| 2. | SPY dividend | 7. | XLF dividend | 2. | NMRA dividend | |
| 3. | EEM dividend | 8. | KWEB dividend | 3. | CRVS dividend | |
| 4. | FXI dividend | 9. | TLT dividend | 4. | ANAB dividend | |
| 5. | IWM dividend | 10. | KRE dividend | 5. | CLSK dividend | |
Want more examples? KALL Dividend | KALV Dividend
