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 Wed 4:16 PM ET):

Alpha and Omega Semiconductor Limited - Common Shares (AOSL)
Bid Ask Last Change Volume P/E Market Cap
20.00 21.50 20.21 +0.08 87K - 0.6B

AOSL Dividend-Like Income Using Covered Calls

With AOSL at 20.21, 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% 0.61 0.2
5% 1.01 0.3
10% 2.02 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
Jan 16 22.50 0.40 24 1.7 1.00 (4.9%)
Jun 18 22.50 2.90 177 1.6 1.00 (4.9%)
5% Yield On AOSL Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Jan 16 22.50 0.40 24 1.7 1.00 (4.9%)
Jun 18 22.50 2.90 177 1.6 1.00 (4.9%)
10% Yield On AOSL Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Jan 16 22.50 0.40 24 1.7 1.00 (4.9%)
Jun 18 22.50 2.90 177 1.6 1.00 (4.9%)

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