AOSL Dividend Type Payments

Alpha and Omega Semiconductor Limited - Common Shares dividend

Although AOSL has no upcoming (meaning, Board-approved and announced) dividends, you can sell covered calls on Alpha and Omega Semiconductor Limited - Common Shares to create 12 extra dividend type payments per year to boost its yield. Let's look at some recent prices (last updated Tue 11:10 AM ET):

Alpha and Omega Semiconductor Limited - Common Shares (AOSL)
Bid Ask Last Change Volume P/E Market Cap
21.35 21.43 21.40 -0.06 11K - 0.6B

AOSL Dividend-Like Income Using Covered Calls

With AOSL at 21.40, 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% 0.64 0.2
5% 1.07 0.3
10% 2.14 0.6

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 AOSL Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Apr 19 22.50 0.05 4 1.3 1.07 (5.0%)
May 17 22.50 1.00 32 3.1 1.07 (5.0%)
5% Yield On AOSL Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Apr 19 22.50 0.05 4 1.3 1.07 (5.0%)
May 17 22.50 1.00 32 3.1 1.07 (5.0%)
10% Yield On AOSL Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Apr 19 22.50 0.05 4 1.3 1.07 (5.0%)
May 17 22.50 1.00 32 3.1 1.07 (5.0%)

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