SMTC Dividend Type Payments

Semtech Corp dividend

Although SMTC has no upcoming (meaning, Board-approved and announced) dividends, you can sell covered calls on Semtech Corp 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):

Semtech Corp (SMTC)
Bid Ask Last Change Volume P/E Market Cap
47.77 55.72 54.38 +0.98 428K 75 3.5B

SMTC Dividend-Like Income Using Covered Calls

With SMTC at 54.38, 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% 1.63 0.4
5% 2.72 0.7
10% 5.44 1.5

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 SMTC Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Mar 15 60.00 0.55 24 2.3 4.28 (7.9%)
Apr 18 65.00 0.35 58 0.6 9.28 (17.1%)
5% Yield On SMTC Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Mar 15 60.00 0.55 24 2.3 4.28 (7.9%)
Apr 18 60.00 0.95 58 1.6 4.28 (7.9%)
10% Yield On SMTC Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Mar 15 60.00 0.55 24 2.3 4.28 (7.9%)
Apr 18 60.00 0.95 58 1.6 4.28 (7.9%)

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Top 10 Open Interest For Mar 15 Expiration     Top 5 High Yield
1.SPX dividend 6.EWZ dividend   1.VIPS dividend
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3.SPY dividend 8.BAC dividend   3.FSLR dividend
4.QQQ dividend 9.XOP dividend   4.IQ dividend
5.FXI dividend 10.LLY dividend   5.TTD dividend

Want more examples? SMTA Dividend | SMTX Dividend