KAMN Dividend

Kaman Corp dividend

Although KAMN has a dividend of 0.20 with an ex-dividend date of Mar 18, you can sell covered calls on Kaman Corp 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):

Kaman Corp (KAMN)
Bid Ask Last Change Volume P/E Market Cap
62.48 62.54 62.50 +0.02 113K 40 1.7B

KAMN Dividend-Like Income Using Covered Calls

With KAMN at 62.50, 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% 1.88 0.5
5% 3.13 0.9
10% 6.25 1.7

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 KAMN Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Mar 15 65.00 0.40 24 1.7 2.46 (3.9%)
Apr 18 65.00 0.80 58 1.4 2.46 (3.9%)
5% Yield On KAMN Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Mar 15 65.00 0.40 24 1.7 2.46 (3.9%)
Apr 18 65.00 0.80 58 1.4 2.46 (3.9%)

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