KLIC Dividend Type Payments
Although KLIC has no upcoming (meaning, Board-approved and announced) dividends, you can sell covered calls on Kulicke & Soffa Industries, Inc to create 12 extra dividend type payments per year to boost its yield. Let's look at some recent prices (last updated Fri 4:16 PM ET):
| Kulicke & Soffa Industries, Inc (KLIC) | ||||||
|---|---|---|---|---|---|---|
| Bid | Ask | Last | Change | Volume | P/E | Market Cap |
| 20.00 | 23.07 | 21.95 | -0.34 | 352K | 17 | 1.4B |
KLIC Dividend-Like Income Using Covered Calls
With KLIC at 21.95, 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% | 0.66 | 0.2 |
| 5% | 1.10 | 0.3 |
| 10% | 2.20 | 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 KLIC Using Covered Calls | ||||||
|---|---|---|---|---|---|---|
| Expiration | Strike | Call Bid | Days | Cents/Day | Upside Potential | |
| Aug 16 | 25.00 | 0.10 | 29 | 0.3 | 1.93 (8.8%) | |
| Oct 18 | 26.00 | 0.20 | 92 | 0.2 | 2.93 (13.3%) | |
| 5% Yield On KLIC Using Covered Calls | ||||||
|---|---|---|---|---|---|---|
| Expiration | Strike | Call Bid | Days | Cents/Day | Upside Potential | |
| Aug 16 | 25.00 | 0.10 | 29 | 0.3 | 1.93 (8.8%) | |
| Oct 18 | 25.00 | 0.40 | 92 | 0.4 | 1.93 (8.8%) | |
| 10% Yield On KLIC Using Covered Calls | ||||||
|---|---|---|---|---|---|---|
| Expiration | Strike | Call Bid | Days | Cents/Day | Upside Potential | |
| Aug 16 | 24.00 | 0.25 | 29 | 0.9 | 0.93 (4.2%) | |
| Oct 18 | 24.00 | 0.65 | 92 | 0.7 | 0.93 (4.2%) | |
Want to increase dividends with covered calls? Sign Up For A Free Trial
| Top 10 Open Interest For Aug 16 Expiration | Top 5 High Yield | |||||
|---|---|---|---|---|---|---|
| 1. | SPY dividend | 6. | QQQ dividend | 1. | SNAP dividend | |
| 2. | FXI dividend | 7. | NIO dividend | 2. | HAL dividend | |
| 3. | EEM dividend | 8. | BAC dividend | 3. | ITCI dividend | |
| 4. | SPX dividend | 9. | GLD dividend | 4. | TWTR dividend | |
| 5. | GDX dividend | 10. | EWZ dividend | 5. | CRWD dividend | |
Want more examples? KLDW Dividend | KMB Dividend
