DLR Dividend Type Payments

DIGITAL REALTY TRUST dividend

Although DLR has no upcoming (meaning, Board-approved and announced) dividends, you can sell covered calls on DIGITAL REALTY TRUST to create 12 extra dividend type payments per year to boost its yield. Let's look at some recent prices (last updated Wed 4:00 PM ET):

DIGITAL REALTY TRUST (DLR)
Bid Ask Last Change Volume P/E Market Cap
110.91 110.92 110.92 +0.93 828K 115 24B

DLR Dividend-Like Income Using Covered Calls

With DLR at 110.92, 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% 3.33 0.9
5% 5.55 1.5
10% 11.09 3.0

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
Nov 16 115.00 1.05 31 3.4 4.08 (3.7%)
Jan 18 120.00 0.95 94 1.0 9.08 (8.2%)
5% Yield On DLR Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Nov 16 115.00 1.05 31 3.4 4.08 (3.7%)
Jan 18 115.00 2.30 94 2.4 4.08 (3.7%)
10% Yield On DLR Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Nov 16 115.00 1.05 31 3.4 4.08 (3.7%)

Want to increase dividends with covered calls?  Sign Up For A Free Trial

 
Top 10 Open Interest For Oct 19 Expiration     Top 5 High Yield
1.SPY dividend 6.PBR dividend   1.CLVS dividend
2.SPX dividend 7.MU dividend   2.LLNW dividend
3.QQQ dividend 8.FXI dividend   3.ERIC dividend
4.EEM dividend 9.IWM dividend   4.GBT dividend
5.BAC dividend 10.AMD dividend   5.SKX dividend

Want more examples? DLPH Dividend | DLS Dividend