KTOS Dividend Type Payments

KRATOS DEFENSE & SECURITY dividend

Although KTOS has no upcoming (meaning, Board-approved and announced) dividends, you can sell covered calls on KRATOS DEFENSE & SECURITY to create 12 extra dividend type payments per year to boost its yield. Let's look at some recent prices (last updated Thu 1:05 PM ET):

KRATOS DEFENSE & SECURITY (KTOS)
Bid Ask Last Change Volume P/E Market Cap
12.76 12.77 12.77 +0.13 235K - 1.3B

KTOS Dividend-Like Income Using Covered Calls

With KTOS at 12.77, 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% 0.38 0.1
5% 0.64 0.2
10% 1.28 0.3

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 16 15.00 0.25 93 0.3 2.23 (17.5%)
Jan 18 15.00 0.40 156 0.3 2.23 (17.5%)
5% Yield On KTOS Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Nov 16 15.00 0.25 93 0.3 2.23 (17.5%)
Jan 18 15.00 0.40 156 0.3 2.23 (17.5%)

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Want more examples? KTCC Dividend | KTWO Dividend