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 3:25 PM ET):

Kratos Defense & Security Solutions, Inc. (KTOS)
Bid Ask Last Change Volume P/E Market Cap
94.94 95.09 94.99 +0.36 3.4M 946 16B

KTOS Dividend-Like Income Using Covered Calls

With KTOS at 94.99, 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% 2.85 0.8
5% 4.75 1.3
10% 9.50 2.6

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
Nov 7 100.00 6.90 26 26.5 4.91 (5.2%)
Nov 14 100.00 6.40 33 19.4 4.91 (5.2%)
5% Yield On KTOS Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Nov 7 100.00 6.90 26 26.5 4.91 (5.2%)
Nov 14 100.00 6.40 33 19.4 4.91 (5.2%)
10% Yield On KTOS Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Nov 7 100.00 6.90 26 26.5 4.91 (5.2%)
Nov 14 100.00 6.40 33 19.4 4.91 (5.2%)

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Want more examples? KTCC Dividend | KURA Dividend