KALU Dividend

Kaiser Aluminum Corporation dividend

Although KALU has a dividend of 0.77 with an ex-dividend date of Oct 24, you can sell covered calls on Kaiser Aluminum Corporation to create 12 extra dividend type payments per year to boost its yield. Let's look at some recent prices (last updated Wed 4:16 PM ET):

Kaiser Aluminum Corporation (KALU)
Bid Ask Last Change Volume P/E Market Cap
70.07 82.88 77.89 -1.85 112K 21 1.3B

KALU Dividend-Like Income Using Covered Calls

With KALU at 77.89, 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% 2.34 0.6
5% 3.89 1.1
10% 7.79 2.1

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 KALU Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Nov 21 100.00 0.25 31 0.8 17.12 (22.0%)
Mar 20 85.00 3.90 150 2.6 2.12 (2.7%)
5% Yield On KALU Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Mar 20 85.00 3.90 150 2.6 2.12 (2.7%)
10% Yield On KALU Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Mar 20 85.00 3.90 150 2.6 2.12 (2.7%)

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