KNX Dividend

KNIGHT-SWIFT TRANS HOLDINGS INC dividend

Although KNX has a dividend of 0.06 with an ex-dividend date of Nov 30, you can sell covered calls on KNIGHT-SWIFT TRANS HOLDINGS INC to create 12 extra dividend type payments per year to boost its yield. Let's look at some recent prices (last updated Mon 4:16 PM ET):

KNIGHT-SWIFT TRANS HOLDINGS INC (KNX)
Bid Ask Last Change Volume P/E Market Cap
30.43 32.35 32.22 +0.49 1.9M 5.8 5.5B

KNX Dividend-Like Income Using Covered Calls

With KNX at 32.22, 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% 0.97 0.3
5% 1.61 0.4
10% 3.22 0.9

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
Dec 21 40.00 0.15 33 0.5 7.65 (23.7%)
Jan 18 40.00 0.25 61 0.4 7.65 (23.7%)
5% Yield On KNX Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Dec 21 40.00 0.15 33 0.5 7.65 (23.7%)
Jan 18 35.00 1.15 61 1.9 2.65 (8.2%)
10% Yield On KNX Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Dec 21 35.00 0.60 33 1.8 2.65 (8.2%)
Jan 18 35.00 1.15 61 1.9 2.65 (8.2%)

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