KNX Dividend

KNIGHT-SWIFT TRANS HOLDINGS INC dividend

Although KNX has a dividend of 0.06 with an ex-dividend date of May 31, 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 Fri 4:16 PM ET):

KNIGHT-SWIFT TRANS HOLDINGS INC (KNX)
Bid Ask Last Change Volume P/E Market Cap
40.64 41.40 40.63 +0.88 2.7M 8.7 7.1B

KNX Dividend-Like Income Using Covered Calls

With KNX at 40.63, 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% 1.22 0.3
5% 2.03 0.6
10% 4.06 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
Jun 15 45.00 0.15 29 0.5 3.60 (8.9%)
Aug 17 45.00 0.95 92 1.0 3.60 (8.9%)
5% Yield On KNX Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Aug 17 45.00 0.95 92 1.0 3.60 (8.9%)
Nov 16 45.00 1.90 183 1.0 3.60 (8.9%)

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