DLR Dividend Type Payments
Although DLR has no upcoming (meaning, Board-approved and announced) dividends, you can sell covered calls on Digital Realty Trust, Inc. to create 12 extra dividend type payments per year to boost its yield. Let's look at some recent prices (last updated Tue 11:25 AM ET):
| Digital Realty Trust, Inc. (DLR) | ||||||
|---|---|---|---|---|---|---|
| Bid | Ask | Last | Change | Volume | P/E | Market Cap |
| 160.30 | 160.48 | 160.39 | -3.21 | 385K | 42 | 56B |
DLR Dividend-Like Income Using Covered Calls
With DLR at 160.39, 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% | 4.81 | 1.3 |
| 5% | 8.02 | 2.2 |
| 10% | 16.04 | 4.4 |
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 DLR Using Covered Calls | ||||||
|---|---|---|---|---|---|---|
| Expiration | Strike | Call Bid | Days | Cents/Day | Upside Potential | |
| Feb 6 | 160.00 | 5.50 | 18 | 27.9 | 0.00 (0.0%) | |
| Feb 13 | 160.00 | 6.20 | 25 | 22.9 | 0.00 (0.0%) | |
| 5% Yield On DLR Using Covered Calls | ||||||
|---|---|---|---|---|---|---|
| Expiration | Strike | Call Bid | Days | Cents/Day | Upside Potential | |
| Feb 6 | 160.00 | 5.50 | 18 | 27.9 | 0.00 (0.0%) | |
| Feb 13 | 160.00 | 6.20 | 25 | 22.9 | 0.00 (0.0%) | |
| 10% Yield On DLR Using Covered Calls | ||||||
|---|---|---|---|---|---|---|
| Expiration | Strike | Call Bid | Days | Cents/Day | Upside Potential | |
| Feb 6 | 160.00 | 5.50 | 18 | 27.9 | 0.00 (0.0%) | |
| Feb 13 | 160.00 | 6.20 | 25 | 22.9 | 0.00 (0.0%) | |
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| Top 10 Open Interest For Feb 20 Expiration | Top 5 High Yield | |||||
|---|---|---|---|---|---|---|
| 1. | KWEB dividend | 6. | IWM dividend | 1. | OCUL dividend | |
| 2. | SLV dividend | 7. | AAPL dividend | 2. | WYFI dividend | |
| 3. | NVDA dividend | 8. | HYG dividend | 3. | RGTI dividend | |
| 4. | IBIT dividend | 9. | INTC dividend | 4. | NVTS dividend | |
| 5. | CORZ dividend | 10. | TLT dividend | 5. | CIFR dividend | |
Want more examples? DLNG Dividend | DLS Dividend
