TSEM Dividend Type Payments
Although TSEM has no upcoming (meaning, Board-approved and announced) dividends, you can sell covered calls on Tower Semiconductor Ltd. - Ordinary Shares to create 12 extra dividend type payments per year to boost its yield. Let's look at some recent prices (last updated Fri 3:50 PM ET):
| Tower Semiconductor Ltd. - Ordinary Shares (TSEM) |
|---|
| Bid |
Ask |
Last |
Change |
Volume |
P/E |
Market Cap |
| 99.34 |
99.72 |
99.53 |
+0.44 |
1.5M |
57 |
11B |
TSEM Dividend-Like Income Using Covered Calls
With TSEM at 99.53, 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% |
2.99 |
0.8 |
| 5% |
4.98 |
1.4 |
| 10% |
9.95 |
2.7 |
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 TSEM Using Covered Calls |
|---|
| Expiration |
Strike |
Call Bid |
Days |
Cents/Day |
Upside Potential |
| Dec 19 |
100.00 |
6.10 |
36 |
16.9 |
0.28 (0.3%) |
| Nov 21 |
100.00 |
2.70 |
8 |
33.8 |
0.28 (0.3%) |
| 5% Yield On TSEM Using Covered Calls |
|---|
| Expiration |
Strike |
Call Bid |
Days |
Cents/Day |
Upside Potential |
| Dec 19 |
100.00 |
6.10 |
36 |
16.9 |
0.28 (0.3%) |
| Nov 21 |
100.00 |
2.70 |
8 |
33.8 |
0.28 (0.3%) |
| 10% Yield On TSEM Using Covered Calls |
|---|
| Expiration |
Strike |
Call Bid |
Days |
Cents/Day |
Upside Potential |
| Dec 19 |
100.00 |
6.10 |
36 |
16.9 |
0.28 (0.3%) |
| Nov 21 |
100.00 |
2.70 |
8 |
33.8 |
0.28 (0.3%) |
Want to increase dividends with covered calls? Sign Up For A Free Trial
