XLNX Dividend Type Payments

XILINX dividend

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

XILINX (XLNX)
Bid Ask Last Change Volume P/E Market Cap
79.00 81.88 78.89 +3.35 3.2M 35 19B

XLNX Dividend-Like Income Using Covered Calls

With XLNX at 78.89, 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% 2.37 0.6
5% 3.94 1.1
10% 7.89 2.2

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 XLNX Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Oct 19 82.50 0.03 4 0.8 0.62 (0.8%)
Oct 26 87.00 0.17 11 1.5 5.12 (6.5%)
5% Yield On XLNX Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Oct 19 82.00 0.05 4 1.3 0.12 (0.2%)
Oct 26 87.00 0.17 11 1.5 5.12 (6.5%)
10% Yield On XLNX Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Oct 26 86.00 0.34 11 3.1 4.12 (5.2%)
Nov 2 86.00 0.47 18 2.6 4.12 (5.2%)

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Top 10 Open Interest For Oct 19 Expiration     Top 5 High Yield
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Want more examples? XLK Dividend | XLP Dividend