KEX Dividend Type Payments

Kirby Corp dividend

Although KEX has no upcoming (meaning, Board-approved and announced) dividends, you can sell covered calls on Kirby Corp to create 12 extra dividend type payments per year to boost its yield. Let's look at some recent prices (last updated Wed 11:15 AM ET):

Kirby Corp (KEX)
Bid Ask Last Change Volume P/E Market Cap
67.33 67.45 67.39 +2.01 103K - 0.0B

KEX Dividend-Like Income Using Covered Calls

With KEX at 67.39, 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% 2.02 0.6
5% 3.37 0.9
10% 6.74 1.8

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 KEX Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Dec 21 70.00 0.10 3 3.3 2.55 (3.8%)
Jan 18 75.00 0.50 31 1.6 7.55 (11.2%)
5% Yield On KEX Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Dec 21 70.00 0.10 3 3.3 2.55 (3.8%)
Jan 18 75.00 0.50 31 1.6 7.55 (11.2%)
10% Yield On KEX Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Dec 21 70.00 0.10 3 3.3 2.55 (3.8%)
Jan 18 70.00 1.75 31 5.6 2.55 (3.8%)

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Top 10 Open Interest For Dec 21 Expiration     Top 5 High Yield
1.SPY dividend 6.FXI dividend   1. dividend
2.EEM dividend 7.EWZ dividend   2. dividend
3.SPX dividend 8.BAC dividend   3. dividend
4.QQQ dividend 9.GE dividend   4. dividend
5.IWM dividend 10.HYG dividend   5. dividend

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