KMX Dividend Type Payments

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

CarMax Inc (KMX)
Bid	Ask	Last	Change	Volume	P/E	Market Cap
82.10	84.50	84.27	+0.04	4.0M	32	13B

KMX Dividend-Like Income Using Covered Calls

With KMX at 84.27, 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%	2.53	0.7
5%	4.21	1.2
10%	8.43	2.3

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 KMX Using Covered Calls
Expiration	Strike	Call Bid	Days	Cents/Day	Upside Potential
Jan 17	85.00	1.90	29	6.6	0.50 (0.6%)
Apr 17	100.00	1.65	119	1.4	15.50 (18.4%)

5% Yield On KMX Using Covered Calls
Expiration	Strike	Call Bid	Days	Cents/Day	Upside Potential
Jan 17	85.00	1.90	29	6.6	0.50 (0.6%)
Apr 17	100.00	1.65	119	1.4	15.50 (18.4%)

10% Yield On KMX Using Covered Calls
Expiration	Strike	Call Bid	Days	Cents/Day	Upside Potential
Jan 17	85.00	1.90	29	6.6	0.50 (0.6%)
Apr 17	85.00	5.00	119	4.2	0.50 (0.6%)

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Top 10 Open Interest For Jan 17 Expiration				Top 5 High Yield
1.	NVDA dividend	6.	INTC dividend	1.	RGTI dividend
2.	SLV dividend	7.	SPY dividend	2.	NMRA dividend
3.	AAPL dividend	8.	TSLA dividend	3.	HUMA dividend
4.	EEM dividend	9.	IWM dividend	4.	DLO dividend
5.	XLF dividend	10.	TLT dividend	5.	MARA dividend

Want more examples? KMT Dividend | KN Dividend