KRNT Dividend Type Payments
Although KRNT has no upcoming (meaning, Board-approved and announced) dividends, you can sell covered calls on Kornit Digital Ltd. - Ordinary Shares to create 12 extra dividend type payments per year to boost its yield. Let's look at some recent prices (last updated Fri 10:05 AM ET):
| Kornit Digital Ltd. - Ordinary Shares (KRNT) |
|---|
| Bid |
Ask |
Last |
Change |
Volume |
P/E |
Market Cap |
| 15.65 |
15.74 |
15.74 |
+0.53 |
10K |
- |
0.7B |
KRNT Dividend-Like Income Using Covered Calls
With KRNT at 15.74, 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% |
0.47 |
0.1 |
| 5% |
0.79 |
0.2 |
| 10% |
1.57 |
0.4 |
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 KRNT Using Covered Calls |
|---|
| Expiration |
Strike |
Call Bid |
Days |
Cents/Day |
Upside Potential |
| May 17 |
17.50 |
0.40 |
22 |
1.8 |
1.76 (11.2%) |
| Jun 21 |
17.50 |
0.60 |
57 |
1.1 |
1.76 (11.2%) |
| 5% Yield On KRNT Using Covered Calls |
|---|
| Expiration |
Strike |
Call Bid |
Days |
Cents/Day |
Upside Potential |
| May 17 |
17.50 |
0.40 |
22 |
1.8 |
1.76 (11.2%) |
| Jun 21 |
17.50 |
0.60 |
57 |
1.1 |
1.76 (11.2%) |
| 10% Yield On KRNT Using Covered Calls |
|---|
| Expiration |
Strike |
Call Bid |
Days |
Cents/Day |
Upside Potential |
| May 17 |
17.50 |
0.40 |
22 |
1.8 |
1.76 (11.2%) |
| Jun 21 |
17.50 |
0.60 |
57 |
1.1 |
1.76 (11.2%) |
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