KALU Dividend Type Payments

Kaiser Aluminum Corp dividend

Although KALU has no upcoming (meaning, Board-approved and announced) dividends, you can sell covered calls on Kaiser Aluminum Corp to create 12 extra dividend type payments per year to boost its yield. Let's look at some recent prices (last updated Fri 3:45 PM ET):

Kaiser Aluminum Corp (KALU)
Bid Ask Last Change Volume P/E Market Cap
103.63 103.75 103.69 -2.99 110K 20 1.7B

KALU Dividend-Like Income Using Covered Calls

With KALU at 103.69, 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% 3.11 0.9
5% 5.18 1.4
10% 10.37 2.8

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
Apr 18 110.00 0.85 28 3.0 6.25 (6.0%)
May 17 115.00 1.00 57 1.8 11.25 (10.8%)
5% Yield On KALU Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Apr 18 110.00 0.85 28 3.0 6.25 (6.0%)
May 17 115.00 1.00 57 1.8 11.25 (10.8%)
10% Yield On KALU Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Apr 18 110.00 0.85 28 3.0 6.25 (6.0%)
May 17 110.00 2.10 57 3.7 6.25 (6.0%)

Want to increase dividends with covered calls?  Sign Up For A Free Trial

 
Top 10 Open Interest For Apr 18 Expiration     Top 5 High Yield
1.SPY dividend 6.USO dividend   1.BCRX dividend
2.EEM dividend 7.AAPL dividend   2.BB dividend
3.SPX dividend 8.BMY dividend   3.ACB dividend
4.QQQ dividend 9.IWM dividend   4.SPWR dividend
5.FXI dividend 10.NIO dividend   5.ROKU dividend

Want more examples? KALA Dividend | KAMN Dividend