CLDT Dividend

Chatham Lodging Trust (REIT) dividend

Although CLDT has a dividend of 0.11 with an ex-dividend date of Dec 28, you can sell covered calls on Chatham Lodging Trust (REIT) to create 12 extra dividend type payments per year to boost its yield. Let's look at some recent prices (last updated Tue 10:00 AM ET):

Chatham Lodging Trust (REIT) (CLDT)
Bid Ask Last Change Volume P/E Market Cap
19.46 19.49 19.48 +0.08 35K - 0.0B

CLDT Dividend-Like Income Using Covered Calls

With CLDT at 19.48, 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% 0.58 0.2
5% 0.97 0.3
10% 1.95 0.5

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 CLDT Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Dec 21 20.00 0.05 11 0.5 0.51 (2.6%)
Jan 18 20.00 0.15 39 0.4 0.51 (2.6%)
5% Yield On CLDT Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Dec 21 20.00 0.05 11 0.5 0.51 (2.6%)
Jan 18 20.00 0.15 39 0.4 0.51 (2.6%)

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Top 10 Open Interest For Dec 21 Expiration     Top 5 High Yield
1.DUST dividend 6.NSSC dividend   1. dividend
2.NOVT dividend 7.MOD dividend   2. dividend
3.MMS dividend 8.VV dividend   3. dividend
4.VSI dividend 9.EC dividend   4. dividend
5.DXJS dividend 10.NTWK dividend   5. dividend

Want more examples? CLDR Dividend | CLF Dividend