KLIC Dividend

Kulicke and Soffa Industries, Inc. dividend

Although KLIC has a dividend of 0.21 with an ex-dividend date of Sep 18, you can sell covered calls on Kulicke and 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 Wed 4:16 PM ET):

Kulicke and Soffa Industries, Inc. (KLIC)
Bid Ask Last Change Volume P/E Market Cap
39.99 43.60 41.30 +0.17 866K 588 2.1B

KLIC Dividend-Like Income Using Covered Calls

With KLIC at 41.30, 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% 1.24 0.3
5% 2.07 0.6
10% 4.13 1.1

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
Oct 17 44.00 0.75 31 2.4 0.40 (1.0%)
Jan 16 45.00 2.05 122 1.7 1.40 (3.4%)
5% Yield On KLIC Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Oct 17 44.00 0.75 31 2.4 0.40 (1.0%)
Jan 16 45.00 2.05 122 1.7 1.40 (3.4%)
10% Yield On KLIC Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Oct 17 44.00 0.75 31 2.4 0.40 (1.0%)
Jan 16 45.00 2.05 122 1.7 1.40 (3.4%)

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