ODFL Dividend Type Payments

OLD DOMINION FREIGHT LNS dividend

Although ODFL has no upcoming (meaning, Board-approved and announced) dividends, you can sell covered calls on OLD DOMINION FREIGHT LNS to create 12 extra dividend type payments per year to boost its yield. Let's look at some recent prices (last updated Tue 4:16 PM ET):

OLD DOMINION FREIGHT LNS (ODFL)
Bid Ask Last Change Volume P/E Market Cap
133.62 142.78 139.00 +3.42 722K 20 11B

ODFL Dividend-Like Income Using Covered Calls

With ODFL at 139.00, 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% 4.17 1.1
5% 6.95 1.9
10% 13.90 3.8

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
Oct 19 155.00 0.05 4 1.3 12.22 (8.8%)
Nov 16 160.00 0.65 32 2.0 17.22 (12.4%)
5% Yield On ODFL Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Nov 16 160.00 0.65 32 2.0 17.22 (12.4%)
Jan 18 160.00 2.05 95 2.2 17.22 (12.4%)
10% Yield On ODFL Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Nov 16 150.00 1.50 32 4.7 7.22 (5.2%)
Jan 18 150.00 4.40 95 4.6 7.22 (5.2%)

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Want more examples? OCUL Dividend | ODP Dividend