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 |
| 21.01 | 24.87 | 23.57 | +0.22 | 291K | 12 | 1.5B |
KLIC Dividend-Like Income Using Covered Calls
With KLIC at 23.57, 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% | 0.71 | 0.2 |
| 5% | 1.18 | 0.3 |
| 10% | 2.36 | 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 | |
| Mar 15 | 25.00 | 0.10 | 22 | 0.5 | 0.13 (0.6%) | |
| Apr 18 | 26.00 | 0.20 | 56 | 0.4 | 1.13 (4.8%) | |
| 5% Yield On KLIC Using Covered Calls | ||||||
|---|---|---|---|---|---|---|
| Expiration | Strike | Call Bid | Days | Cents/Day | Upside Potential | |
| Mar 15 | 25.00 | 0.10 | 22 | 0.5 | 0.13 (0.6%) | |
| Apr 18 | 26.00 | 0.20 | 56 | 0.4 | 1.13 (4.8%) | |
| 10% Yield On KLIC Using Covered Calls | ||||||
|---|---|---|---|---|---|---|
| Expiration | Strike | Call Bid | Days | Cents/Day | Upside Potential | |
| Apr 18 | 25.00 | 0.40 | 56 | 0.7 | 0.13 (0.6%) | |
| Jul 19 | 25.00 | 1.20 | 148 | 0.8 | 0.13 (0.6%) | |
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| Top 10 Open Interest For Mar 15 Expiration | Top 5 High Yield | |||||
|---|---|---|---|---|---|---|
| 1. | SPX dividend | 6. | EWZ dividend | 1. | AMRN dividend | |
| 2. | EEM dividend | 7. | GE dividend | 2. | FIT dividend | |
| 3. | SPY dividend | 8. | LLY dividend | 3. | ASND dividend | |
| 4. | QQQ dividend | 9. | BAC dividend | 4. | IMGN dividend | |
| 5. | FXI dividend | 10. | GLD dividend | 5. | OSTK dividend | |
Want more examples? KLDW Dividend | KMB Dividend
