LSCC Dividend Type Payments

Lattice Semiconductor Corporation dividend

Although LSCC has no upcoming (meaning, Board-approved and announced) dividends, you can sell covered calls on Lattice Semiconductor Corporation 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):

Lattice Semiconductor Corporation (LSCC)
Bid Ask Last Change Volume P/E Market Cap
74.00 78.13 77.95 +0.76 1.7M 386 11B

LSCC Dividend-Like Income Using Covered Calls

With LSCC at 77.95, 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% 2.34 0.6
5% 3.90 1.1
10% 7.80 2.1

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 LSCC Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Dec 19 80.00 1.45 11 13.2 1.87 (2.4%)
Jan 16 100.00 0.25 39 0.6 21.87 (28.1%)
5% Yield On LSCC Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Dec 19 80.00 1.45 11 13.2 1.87 (2.4%)
Jan 16 80.00 3.40 39 8.7 1.87 (2.4%)
10% Yield On LSCC Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Dec 19 80.00 1.45 11 13.2 1.87 (2.4%)
Jan 16 80.00 3.40 39 8.7 1.87 (2.4%)

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