RLJ Dividend Type Payments
Although RLJ has no upcoming (meaning, Board-approved and announced) dividends, you can sell covered calls on RLJ Lodging Trust Common Shares of Beneficial Interest $0.01 par value to create 12 extra dividend type payments per year to boost its yield. Let's look at some recent prices (last updated Fri 12:30 PM ET):
RLJ Lodging Trust Common Shares of Beneficial Interest $0.01 par value (RLJ) | ||||||
---|---|---|---|---|---|---|
Bid | Ask | Last | Change | Volume | P/E | Market Cap |
10.93 | 10.94 | 10.93 | +0.02 | 213K | 34 | 1.7B |
RLJ Dividend-Like Income Using Covered Calls
With RLJ at 10.93, 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% | 0.33 | 0.1 |
5% | 0.55 | 0.1 |
10% | 1.09 | 0.3 |
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 RLJ Using Covered Calls | ||||||
---|---|---|---|---|---|---|
Expiration | Strike | Call Bid | Days | Cents/Day | Upside Potential | |
Aug 16 | 12.50 | 0.15 | 120 | 0.1 | 1.56 (14.3%) | |
Nov 15 | 12.50 | 0.35 | 211 | 0.2 | 1.56 (14.3%) |
5% Yield On RLJ Using Covered Calls | ||||||
---|---|---|---|---|---|---|
Expiration | Strike | Call Bid | Days | Cents/Day | Upside Potential | |
Nov 15 | 12.50 | 0.35 | 211 | 0.2 | 1.56 (14.3%) |
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Top 10 Open Interest For May 17 Expiration | Top 5 High Yield | |||||
---|---|---|---|---|---|---|
1. | HYG dividend | 6. | KWEB dividend | 1. | CVNA dividend | |
2. | IWM dividend | 7. | EEM dividend | 2. | CLSK dividend | |
3. | FXI dividend | 8. | SLV dividend | 3. | FSLY dividend | |
4. | QQQ dividend | 9. | TSLA dividend | 4. | DJT dividend | |
5. | SPY dividend | 10. | EWZ dividend | 5. | MARA dividend |
Want more examples? RLI Dividend | RLMD Dividend