KAI Dividend Type Payments
Although KAI has no upcoming (meaning, Board-approved and announced) dividends, you can sell covered calls on Kadant Inc to create 12 extra dividend type payments per year to boost its yield. Let's look at some recent prices (last updated Tue 2:55 PM ET):
| Kadant Inc (KAI) | ||||||
|---|---|---|---|---|---|---|
| Bid | Ask | Last | Change | Volume | P/E | Market Cap |
| 273.76 | 274.60 | 274.13 | -2.68 | 95K | 31 | 3.3B |
KAI Dividend-Like Income Using Covered Calls
With KAI at 274.13, 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% | 8.22 | 2.3 |
| 5% | 13.71 | 3.8 |
| 10% | 27.41 | 7.5 |
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 KAI Using Covered Calls | ||||||
|---|---|---|---|---|---|---|
| Expiration | Strike | Call Bid | Days | Cents/Day | Upside Potential | |
| Dec 19 | 280.00 | 9.00 | 46 | 19.6 | 5.40 (2.0%) | |
| Nov 21 | 280.00 | 4.00 | 18 | 22.2 | 5.40 (2.0%) | |
| 5% Yield On KAI Using Covered Calls | ||||||
|---|---|---|---|---|---|---|
| Expiration | Strike | Call Bid | Days | Cents/Day | Upside Potential | |
| Dec 19 | 280.00 | 9.00 | 46 | 19.6 | 5.40 (2.0%) | |
| Nov 21 | 280.00 | 4.00 | 18 | 22.2 | 5.40 (2.0%) | |
| 10% Yield On KAI Using Covered Calls | ||||||
|---|---|---|---|---|---|---|
| Expiration | Strike | Call Bid | Days | Cents/Day | Upside Potential | |
| Dec 19 | 280.00 | 9.00 | 46 | 19.6 | 5.40 (2.0%) | |
| Nov 21 | 280.00 | 4.00 | 18 | 22.2 | 5.40 (2.0%) | |
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| Top 10 Open Interest For Nov 21 Expiration | Top 5 High Yield | |||||
|---|---|---|---|---|---|---|
| 1. | IBIT dividend | 6. | INTC dividend | 1. | UPST dividend | |
| 2. | KVUE dividend | 7. | TLT dividend | 2. | PINS dividend | |
| 3. | NVDA dividend | 8. | ASST dividend | 3. | TTD dividend | |
| 4. | SLV dividend | 9. | HYG dividend | 4. | CAVA dividend | |
| 5. | GLD dividend | 10. | EEM dividend | 5. | LYFT dividend | |
Want more examples? K Dividend | KALU Dividend
