KSS Dividend Type Payments

KOHL'S dividend

Although KSS has no upcoming (meaning, Board-approved and announced) dividends, you can sell covered calls on KOHL'S to create 12 extra dividend type payments per year to boost its yield. Let's look at some recent prices (last updated Tue 3:00 PM ET):

KOHL'S (KSS)
Bid Ask Last Change Volume P/E Market Cap
78.12 78.14 78.14 +1.72 2.9M 15 13B

KSS Dividend-Like Income Using Covered Calls

With KSS at 78.14, 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% 2.34 0.6
5% 3.91 1.1
10% 7.81 2.1

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 KSS Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Aug 17 84.00 0.05 4 1.3 5.86 (7.5%)
Aug 24 95.00 0.15 11 1.4 16.86 (21.6%)
5% Yield On KSS Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Aug 17 84.00 0.05 4 1.3 5.86 (7.5%)
Aug 24 95.00 0.15 11 1.4 16.86 (21.6%)
10% Yield On KSS Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Aug 17 82.50 0.15 4 3.8 4.36 (5.6%)
Aug 24 92.00 0.25 11 2.3 13.86 (17.7%)

Want to increase dividends with covered calls?  Sign Up For A Free Trial

 
Top 10 Open Interest For Aug 17 Expiration     Top 5 High Yield
1.SPY dividend 6.BAC dividend   1.M dividend
2.EEM dividend 7.AABA dividend   2.UVXY dividend
3.QQQ dividend 8.FXI dividend   3.VIAV dividend
4.SPX dividend 9.FB dividend   4.JWN dividend
5.XLF dividend 10.GLD dividend   5.CGC dividend

Want more examples? KSA Dividend | KSU Dividend