KALU Dividend

Although KALU has a dividend of 0.55 with an ex-dividend date of Oct 24, you can sell covered calls on KAISER ALUMINUM to create 12 extra dividend type payments per year to boost its yield. Let's look at some recent prices (last updated Fri 10:50 AM ET):

KAISER ALUMINUM (KALU)
Bid	Ask	Last	Change	Volume	P/E	Market Cap
98.44	98.70	98.57	+2.76	53K	31	1.6B

KALU Dividend-Like Income Using Covered Calls

With KALU at 98.57, here's a table showing how big the annual "dividend" (ie. 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%	2.96	0.8
5%	4.93	1.4
10%	9.86	2.7

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 KALU Using Covered Calls
Expiration	Strike	Call Bid	Days	Cents/Day	Upside Potential
Nov 16	105.00	0.35	29	1.2	6.30 (6.4%)
Dec 21	105.00	1.30	64	2.0	6.30 (6.4%)

5% Yield On KALU Using Covered Calls
Expiration	Strike	Call Bid	Days	Cents/Day	Upside Potential
Nov 16	100.00	1.60	29	5.5	1.30 (1.3%)
Dec 21	105.00	1.30	64	2.0	6.30 (6.4%)

10% Yield On KALU Using Covered Calls
Expiration	Strike	Call Bid	Days	Cents/Day	Upside Potential
Nov 16	100.00	1.60	29	5.5	1.30 (1.3%)
Dec 21	100.00	3.00	64	4.7	1.30 (1.3%)

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Top 10 Open Interest For Nov 16 Expiration				Top 5 High Yield
1.	SPY dividend	6.	SPX dividend	1.	UVXY dividend
2.	EWZ dividend	7.	FXI dividend	2.	SKX dividend
3.	EEM dividend	8.	VXX dividend	3.	CGC dividend
4.	PBR dividend	9.	IWM dividend	4.	TLRY dividend
5.	QQQ dividend	10.	BAC dividend	5.	SNAP dividend

Want more examples? KALA Dividend | KAMN Dividend