ODFL Dividend

OLD Dominion Freight LNS, Inc dividend

Although ODFL has a dividend of 0.17 with an ex-dividend date of Mar 5, you can sell covered calls on OLD Dominion Freight LNS, Inc to create 12 extra dividend type payments per year to boost its yield. Let's look at some recent prices (last updated Fri 4:16 PM ET):

OLD Dominion Freight LNS, Inc (ODFL)
Bid Ask Last Change Volume P/E Market Cap
105.18 149.49 146.37 +1.50 349K 19 12B

ODFL Dividend-Like Income Using Covered Calls

With ODFL at 146.37, 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% 4.39 1.2
5% 7.32 2.0
10% 14.64 4.0

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 ODFL Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Mar 15 160.00 0.40 29 1.4 10.51 (7.2%)
Apr 18 165.00 1.00 63 1.6 15.51 (10.6%)
5% Yield On ODFL Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Mar 15 155.00 1.10 29 3.8 5.51 (3.8%)
Apr 18 160.00 1.80 63 2.9 10.51 (7.2%)
10% Yield On ODFL Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Mar 15 150.00 2.45 29 8.4 0.51 (0.3%)
Apr 18 155.00 3.00 63 4.8 5.51 (3.8%)

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Want more examples? OCUL Dividend | ODP Dividend