KLIC Dividend Type Payments

KULICKE & SOFFA dividend

Although KLIC has no upcoming (meaning, Board-approved and announced) dividends, you can sell covered calls on KULICKE & SOFFA to create 12 extra dividend type payments per year to boost its yield. Let's look at some recent prices (last updated Tue 4:16 PM ET):

KULICKE & SOFFA (KLIC)
Bid Ask Last Change Volume P/E Market Cap
24.75 27.46 27.01 +0.08 309K 35 1.8B

KLIC Dividend-Like Income Using Covered Calls

With KLIC at 27.01, 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% 0.81 0.2
5% 1.35 0.4
10% 2.70 0.7

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
Sep 21 30.00 0.15 39 0.4 2.54 (9.4%)
Oct 19 30.00 0.30 67 0.4 2.54 (9.4%)
5% Yield On KLIC Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Sep 21 30.00 0.15 39 0.4 2.54 (9.4%)
Oct 19 30.00 0.30 67 0.4 2.54 (9.4%)
10% Yield On KLIC Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Sep 21 29.00 0.30 39 0.8 1.54 (5.7%)
Oct 19 29.00 0.55 67 0.8 1.54 (5.7%)

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Want more examples? KLDW Dividend | KLX Dividend