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
48.00	55.99	54.90	-1.37	2.8M	68	9.1B

KNX Dividend-Like Income Using Covered Calls

With KNX at 54.90, 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%	1.65	0.5
5%	2.75	0.8
10%	5.49	1.5

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
May 15	57.50	3.10	109	2.8	1.51 (2.8%)
Dec 18	57.50	6.30	326	1.9	1.51 (2.8%)

5% Yield On KNX Using Covered Calls
Expiration	Strike	Call Bid	Days	Cents/Day	Upside Potential
May 15	57.50	3.10	109	2.8	1.51 (2.8%)
Dec 18	57.50	6.30	326	1.9	1.51 (2.8%)

10% Yield On KNX Using Covered Calls
Expiration	Strike	Call Bid	Days	Cents/Day	Upside Potential
May 15	57.50	3.10	109	2.8	1.51 (2.8%)
Dec 18	57.50	6.30	326	1.9	1.51 (2.8%)

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Want more examples? KNSL Dividend | KO Dividend