KTOS Dividend Type Payments

Although KTOS has no upcoming (meaning, Board-approved and announced) dividends, you can sell covered calls on Kratos Defense & Security Solutions, 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):

Kratos Defense & Security Solutions, Inc. (KTOS)
Bid	Ask	Last	Change	Volume	P/E	Market Cap
24.30	24.82	24.42	-0.86	1.3M	253	3.8B

KTOS Dividend-Like Income Using Covered Calls

With KTOS at 24.42, 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%	0.73	0.2
5%	1.22	0.3
10%	2.44	0.7

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 KTOS Using Covered Calls
Expiration	Strike	Call Bid	Days	Cents/Day	Upside Potential
Dec 20	25.00	0.10	36	0.3	0.18 (0.7%)
May 16	25.00	2.50	183	1.4	0.18 (0.7%)

5% Yield On KTOS Using Covered Calls
Expiration	Strike	Call Bid	Days	Cents/Day	Upside Potential
Dec 20	27.50	0.25	36	0.7	2.68 (11.0%)
May 16	25.00	2.50	183	1.4	0.18 (0.7%)

10% Yield On KTOS Using Covered Calls
Expiration	Strike	Call Bid	Days	Cents/Day	Upside Potential
Dec 20	27.50	0.25	36	0.7	2.68 (11.0%)
May 16	25.00	2.50	183	1.4	0.18 (0.7%)

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Top 10 Open Interest For Dec 20 Expiration				Top 5 High Yield
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Want more examples? KTCC Dividend | KURA Dividend