KEP Dividend Type Payments

Korea Electric Power Corporation dividend

Although KEP has no upcoming (meaning, Board-approved and announced) dividends, you can sell covered calls on Korea Electric Power Corporation to create 12 extra dividend type payments per year to boost its yield. Let's look at some recent prices (last updated Tue 12:35 PM ET):

Korea Electric Power Corporation (KEP)
Bid Ask Last Change Volume P/E Market Cap
8.66 8.67 8.67 +0.10 25K 1.9 11B

KEP Dividend-Like Income Using Covered Calls

With KEP at 8.67, 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% 0.26 0.1
5% 0.43 0.1
10% 0.87 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 KEP Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Dec 20 10.00 0.05 32 0.2 1.33 (15.3%)
Jun 20 10.00 0.20 214 0.1 1.33 (15.3%)
5% Yield On KEP Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Dec 20 10.00 0.05 32 0.2 1.33 (15.3%)

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