KORS Dividend Type Payments

MICHAEL KORS HOLDINGS dividend

Although KORS has no upcoming (meaning, Board-approved and announced) dividends, you can sell covered calls on MICHAEL KORS HOLDINGS 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):

MICHAEL KORS HOLDINGS (KORS)
Bid Ask Last Change Volume P/E Market Cap
62.01 65.03 63.61 +1.65 1.9M 14 9.3B

KORS Dividend-Like Income Using Covered Calls

With KORS at 63.61, 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% 1.91 0.5
5% 3.18 0.9
10% 6.36 1.7

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 KORS Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Oct 19 68.50 0.05 8 0.6 3.47 (5.5%)
Oct 26 70.00 0.10 15 0.7 4.97 (7.8%)
5% Yield On KORS Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Oct 19 68.00 0.10 8 1.3 2.97 (4.7%)
Oct 26 69.00 0.15 15 1.0 3.97 (6.2%)
10% Yield On KORS Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Oct 19 67.00 0.15 8 1.9 1.97 (3.1%)
Oct 26 67.50 0.35 15 2.3 2.47 (3.9%)

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