KKR Dividend Type Payments

KKR & Co. Inc. dividend

Although KKR has no upcoming (meaning, Board-approved and announced) dividends, you can sell covered calls on KKR & Co. Inc. to create 12 extra dividend type payments per year to boost its yield. Let's look at some recent prices (last updated Mon 11:45 AM ET):

KKR & Co. Inc. (KKR)
Bid Ask Last Change Volume P/E Market Cap
148.54 148.65 148.65 +1.06 674K 46 131B

KKR Dividend-Like Income Using Covered Calls

With KKR at 148.65, 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% 4.46 1.2
5% 7.43 2.0
10% 14.87 4.1

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 KKR Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Dec 27 148.00 2.10 5 29.0 0.00 (0.0%)
Jan 3 148.00 3.40 12 22.9 0.00 (0.0%)
5% Yield On KKR Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Dec 27 148.00 2.10 5 29.0 0.00 (0.0%)
Jan 3 148.00 3.40 12 22.9 0.00 (0.0%)
10% Yield On KKR Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Dec 27 148.00 2.10 5 29.0 0.00 (0.0%)
Jan 3 148.00 3.40 12 22.9 0.00 (0.0%)

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Want more examples? KIRK Dividend | KLAC Dividend