KLAC Dividend Type Payments

KLA Corporation dividend

Although KLAC has no upcoming (meaning, Board-approved and announced) dividends, you can sell covered calls on KLA Corporation 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):

KLA Corporation (KLAC)
Bid Ask Last Change Volume P/E Market Cap
626.26 629.37 629.37 +7.19 2.2M 28 83B

KLAC Dividend-Like Income Using Covered Calls

With KLAC at 629.37, 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% 18.88 5.2
5% 31.47 8.6
10% 62.94 17.2

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 KLAC Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Jan 17 630.00 23.00 29 79.3 0.63 (0.1%)
Sep 19 640.00 84.60 274 30.9 10.63 (1.7%)
5% Yield On KLAC Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Jan 17 630.00 23.00 29 79.3 0.63 (0.1%)
Sep 19 640.00 84.60 274 30.9 10.63 (1.7%)
10% Yield On KLAC Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Jan 17 630.00 23.00 29 79.3 0.63 (0.1%)
Sep 19 640.00 84.60 274 30.9 10.63 (1.7%)

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Want more examples? KKR Dividend | KLIC Dividend