AOSL Dividend Type Payments

Alpha and Omega Semiconductor Limited - Common Shares dividend

Although AOSL has no upcoming (meaning, Board-approved and announced) dividends, you can sell covered calls on Alpha and Omega Semiconductor Limited - Common Shares to create 12 extra dividend type payments per year to boost its yield. Let's look at some recent prices (last updated Tue 2:20 PM ET):

Alpha and Omega Semiconductor Limited - Common Shares (AOSL)
Bid Ask Last Change Volume P/E Market Cap
32.01 32.09 32.05 +1.43 242K - 0.9B

AOSL Dividend-Like Income Using Covered Calls

With AOSL at 32.05, 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% 0.96 0.3
5% 1.60 0.4
10% 3.21 0.9

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 AOSL Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Dec 20 32.50 1.70 32 5.3 0.41 (1.3%)
Jan 17 32.50 2.40 60 4.0 0.41 (1.3%)
5% Yield On AOSL Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Dec 20 32.50 1.70 32 5.3 0.41 (1.3%)
Jan 17 32.50 2.40 60 4.0 0.41 (1.3%)
10% Yield On AOSL Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Dec 20 32.50 1.70 32 5.3 0.41 (1.3%)
Jan 17 32.50 2.40 60 4.0 0.41 (1.3%)

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