KNX Dividend Type Payments

KNIGHT-SWIFT TRANS HOLDINGS INC dividend

Although KNX has no upcoming (meaning, Board-approved and announced) dividends, 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
36.00 36.36 36.36 -1.55 6.3M 8.3 6.8B

KNX Dividend-Like Income Using Covered Calls

With KNX at 36.36, 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% 1.09 0.3
5% 1.82 0.5
10% 3.64 1.0

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
Jul 20 40.00 0.05 5 1.0 3.64 (10.0%)
Aug 17 45.00 0.10 33 0.3 8.64 (23.8%)
5% Yield On KNX Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Jul 20 40.00 0.05 5 1.0 3.64 (10.0%)
Aug 17 40.00 0.60 33 1.8 3.64 (10.0%)
10% Yield On KNX Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Jul 20 40.00 0.05 5 1.0 3.64 (10.0%)
Aug 17 40.00 0.60 33 1.8 3.64 (10.0%)

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