KNX Dividend Type Payments

Although KNX has no upcoming (meaning, Board-approved and announced) dividends, you can sell covered calls on Knight-Swift Transportation Holdings Inc. to create 12 extra dividend type payments per year to boost its yield. Let's look at some recent prices (last updated Tue 4:16 PM ET):

Knight-Swift Transportation Holdings Inc. (KNX)
Bid	Ask	Last	Change	Volume	P/E	Market Cap
38.28	41.85	39.21	+0.43	2.7M	53	6.3B

KNX Dividend-Like Income Using Covered Calls

With KNX at 39.21, 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%	1.18	0.3
5%	1.96	0.5
10%	3.92	1.1

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 KNX Using Covered Calls
Expiration	Strike	Call Bid	Days	Cents/Day	Upside Potential
Aug 15	42.50	1.40	109	1.3	0.65 (1.7%)
May 16	42.50	0.25	18	1.4	0.65 (1.7%)

5% Yield On KNX Using Covered Calls
Expiration	Strike	Call Bid	Days	Cents/Day	Upside Potential
Aug 15	42.50	1.40	109	1.3	0.65 (1.7%)
May 16	42.50	0.25	18	1.4	0.65 (1.7%)

10% Yield On KNX Using Covered Calls
Expiration	Strike	Call Bid	Days	Cents/Day	Upside Potential
Aug 15	42.50	1.40	109	1.3	0.65 (1.7%)
May 16	42.50	0.25	18	1.4	0.65 (1.7%)

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Want more examples? KNSL Dividend | KO Dividend