KBH Dividend Type Payments
Although KBH has no upcoming (meaning, Board-approved and announced) dividends, you can sell covered calls on KB Home to create 12 extra dividend type payments per year to boost its yield. Let's look at some recent prices (last updated Fri 4:16 PM ET):
KB Home (KBH) | ||||||
---|---|---|---|---|---|---|
Bid | Ask | Last | Change | Volume | P/E | Market Cap |
62.89 | 64.80 | 63.45 | -2.97 | 1.6M | 7.9 | 4.8B |
KBH Dividend-Like Income Using Covered Calls
With KBH at 63.45, 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% | 1.90 | 0.5 |
5% | 3.17 | 0.9 |
10% | 6.35 | 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 KBH Using Covered Calls | ||||||
---|---|---|---|---|---|---|
Expiration | Strike | Call Bid | Days | Cents/Day | Upside Potential | |
Apr 17 | 65.00 | 3.70 | 70 | 5.3 | 0.20 (0.3%) | |
Jul 18 | 65.00 | 5.90 | 162 | 3.6 | 0.20 (0.3%) |
5% Yield On KBH Using Covered Calls | ||||||
---|---|---|---|---|---|---|
Expiration | Strike | Call Bid | Days | Cents/Day | Upside Potential | |
Apr 17 | 65.00 | 3.70 | 70 | 5.3 | 0.20 (0.3%) | |
Jul 18 | 65.00 | 5.90 | 162 | 3.6 | 0.20 (0.3%) |
10% Yield On KBH Using Covered Calls | ||||||
---|---|---|---|---|---|---|
Expiration | Strike | Call Bid | Days | Cents/Day | Upside Potential | |
Apr 17 | 65.00 | 3.70 | 70 | 5.3 | 0.20 (0.3%) | |
Jul 18 | 65.00 | 5.90 | 162 | 3.6 | 0.20 (0.3%) |
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Top 10 Open Interest For Feb 21 Expiration | Top 5 High Yield | |||||
---|---|---|---|---|---|---|
1. | NVDA dividend | 6. | TSLA dividend | 1. | BBAI dividend | |
2. | SPY dividend | 7. | QQQ dividend | 2. | UPST dividend | |
3. | TLT dividend | 8. | SLV dividend | 3. | LYFT dividend | |
4. | IWM dividend | 9. | KWEB dividend | 4. | RGTI dividend | |
5. | FXI dividend | 10. | GLD dividend | 5. | QS dividend |
Want more examples? KBE Dividend | KBR Dividend