PDM Dividend

PIEDMONT OFFICE REALTY dividend

Although PDM has a dividend of 0.21 with an ex-dividend date of Aug 30, you can sell covered calls on PIEDMONT OFFICE REALTY to create 12 extra dividend type payments per year to boost its yield. Let's look at some recent prices (last updated Thu 1:15 PM ET):

PIEDMONT OFFICE REALTY (PDM)
Bid Ask Last Change Volume P/E Market Cap
19.94 19.95 19.94 +0.18 196K 17 2.5B

PDM Dividend-Like Income Using Covered Calls

With PDM at 19.94, 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% 0.60 0.2
5% 1.00 0.3
10% 1.99 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 PDM Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Sep 21 20.00 0.15 37 0.4 0.05 (0.3%)
Dec 21 20.00 0.45 128 0.4 0.05 (0.3%)
5% Yield On PDM Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Sep 21 20.00 0.15 37 0.4 0.05 (0.3%)
Dec 21 20.00 0.45 128 0.4 0.05 (0.3%)

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

 
Top 10 Open Interest For Aug 17 Expiration     Top 5 High Yield
1.SPY dividend 6.XLF dividend   1.JWN dividend
2.EEM dividend 7.FB dividend   2.NVDA dividend
3.QQQ dividend 8.FXI dividend   3.ENPH dividend
4.BAC dividend 9.GLD dividend   4.AMAT dividend
5.SPX dividend 10.AABA dividend   5.UVXY dividend

Want more examples? PDLI Dividend | PDN Dividend