KNX Dividend Type Payments
Although KNX has no upcoming (meaning, Board-approved and announced) dividends, you can sell covered calls on Knight-Swift Transportation Holdings 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):
| Knight-Swift Transportation Holdings Inc. (KNX) | ||||||
|---|---|---|---|---|---|---|
| Bid | Ask | Last | Change | Volume | P/E | Market Cap |
| 41.00 | 43.00 | 41.69 | -1.26 | 1.8M | 42 | 6.9B |
KNX Dividend-Like Income Using Covered Calls
With KNX at 41.69, 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% | 1.25 | 0.3 |
| 5% | 2.08 | 0.6 |
| 10% | 4.17 | 1.1 |
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 KNX Using Covered Calls | ||||||
|---|---|---|---|---|---|---|
| Expiration | Strike | Call Bid | Days | Cents/Day | Upside Potential | |
| Oct 17 | 45.00 | 0.75 | 36 | 2.1 | 2.00 (4.8%) | |
| Sep 19 | 45.00 | 0.10 | 8 | 1.3 | 2.00 (4.8%) | |
| 5% Yield On KNX Using Covered Calls | ||||||
|---|---|---|---|---|---|---|
| Expiration | Strike | Call Bid | Days | Cents/Day | Upside Potential | |
| Oct 17 | 45.00 | 0.75 | 36 | 2.1 | 2.00 (4.8%) | |
| Sep 19 | 45.00 | 0.10 | 8 | 1.3 | 2.00 (4.8%) | |
| 10% Yield On KNX Using Covered Calls | ||||||
|---|---|---|---|---|---|---|
| Expiration | Strike | Call Bid | Days | Cents/Day | Upside Potential | |
| Oct 17 | 45.00 | 0.75 | 36 | 2.1 | 2.00 (4.8%) | |
| Sep 19 | 45.00 | 0.10 | 8 | 1.3 | 2.00 (4.8%) | |
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| Top 10 Open Interest For Sep 19 Expiration | Top 5 High Yield | |||||
|---|---|---|---|---|---|---|
| 1. | NVDA dividend | 6. | QQQ dividend | 1. | ATYR dividend | |
| 2. | SPY dividend | 7. | IBIT dividend | 2. | OPEN dividend | |
| 3. | IWM dividend | 8. | SLV dividend | 3. | IONQ dividend | |
| 4. | PCG dividend | 9. | TSLA dividend | 4. | QURE dividend | |
| 5. | EEM dividend | 10. | FXI dividend | 5. | ARCT dividend | |
Want more examples? KNSL Dividend | KO Dividend
