ON Dividend Type Payments

Although ON has no upcoming (meaning, Board-approved and announced) dividends, you can sell covered calls on ON Semiconductor Corp to create 12 extra dividend type payments per year to boost its yield. Let's look at some recent prices (last updated Wed 11:45 AM ET):

ON Semiconductor Corp (ON)
Bid Ask Last Change Volume P/E Market Cap
22.77 22.78 22.78 0.00 2.1M 10 10B

ON Dividend-Like Income Using Covered Calls

With ON at 22.78, 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% 0.68 0.2
5% 1.14 0.3
10% 2.28 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 ON Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Mar 15 25.00 0.15 24 0.6 2.22 (9.7%)
Apr 18 27.00 0.15 58 0.3 4.22 (18.5%)
5% Yield On ON Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Mar 15 25.00 0.15 24 0.6 2.22 (9.7%)
Apr 18 26.00 0.30 58 0.5 3.22 (14.1%)
10% Yield On ON Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Mar 15 25.00 0.15 24 0.6 2.22 (9.7%)
Apr 18 25.00 0.50 58 0.9 2.22 (9.7%)

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Top 10 Open Interest For Mar 15 Expiration     Top 5 High Yield
1.SPX dividend 6.EWZ dividend   1.ROKU dividend
2.EEM dividend 7.GE dividend   2.VIPS dividend
3.SPY dividend 8.BAC dividend   3.APHA dividend
4.QQQ dividend 9.XOP dividend   4.DBX dividend
5.FXI dividend 10.LLY dividend   5.FSLR dividend

Want more examples? OMN Dividend | ONB Dividend