KTOS Dividend Type Payments

Kratos Defense & Security Solutions, Inc dividend

Although KTOS has no upcoming (meaning, Board-approved and announced) dividends, you can sell covered calls on Kratos Defense & Security Solutions, Inc to create 12 extra dividend type payments per year to boost its yield. Let's look at some recent prices (last updated Mon 3:30 PM ET):

Kratos Defense & Security Solutions, Inc (KTOS)
Bid Ask Last Change Volume P/E Market Cap
15.62 15.63 15.63 0.00 526K - 1.6B

KTOS Dividend-Like Income Using Covered Calls

With KTOS at 15.63, 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% 0.47 0.1
5% 0.78 0.2
10% 1.56 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 KTOS Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Apr 18 17.50 0.10 25 0.4 1.87 (12.0%)
May 17 17.50 0.45 54 0.8 1.87 (12.0%)
5% Yield On KTOS Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Apr 18 17.50 0.10 25 0.4 1.87 (12.0%)
May 17 17.50 0.45 54 0.8 1.87 (12.0%)
10% Yield On KTOS Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
May 17 17.50 0.45 54 0.8 1.87 (12.0%)
Aug 16 17.50 0.90 145 0.6 1.87 (12.0%)

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