KNX Dividend Type Payments

Knight-Swift Transportation Holdings, Inc dividend

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 Thu 4:16 PM ET):

Knight-Swift Transportation Holdings, Inc (KNX)
Bid Ask Last Change Volume P/E Market Cap
32.29 37.65 35.81 +0.72 2.6M 14 6.1B

KNX Dividend-Like Income Using Covered Calls

With KNX at 35.81, 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% 1.07 0.3
5% 1.79 0.5
10% 3.58 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
Aug 16 45.00 0.15 30 0.5 7.35 (20.5%)
Nov 15 50.00 0.45 121 0.4 12.35 (34.5%)
5% Yield On KNX Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Aug 16 45.00 0.15 30 0.5 7.35 (20.5%)
Nov 15 45.00 1.00 121 0.8 7.35 (20.5%)
10% Yield On KNX Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Aug 16 40.00 0.65 30 2.2 2.35 (6.6%)
Nov 15 40.00 2.10 121 1.7 2.35 (6.6%)

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Top 10 Open Interest For Aug 16 Expiration     Top 5 High Yield
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3.GDX dividend 8.BAC dividend   3.MAN dividend
4.SPX dividend 9.GLD dividend   4.OSTK dividend
5.EEM dividend 10.IWM dividend   5.SKX dividend

Want more examples? KNSL Dividend | KO Dividend