RLJ Dividend

Although RLJ has a dividend of 0.15 with an ex-dividend date of Sep 30, 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 Thu 12:00 PM ET):

RLJ Lodging Trust Common Shares of Beneficial Interest $0.01 par value (RLJ)
Bid	Ask	Last	Change	Volume	P/E	Market Cap
7.35	7.36	7.35	-0.12	225K	36	1.1B

RLJ Dividend-Like Income Using Covered Calls

With RLJ at 7.35, 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%	0.22	0.1
5%	0.37	0.1
10%	0.74	0.2

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
Oct 17	7.50	0.05	23	0.2	0.14 (1.9%)
Feb 20	7.50	0.10	149	0.1	0.14 (1.9%)

5% Yield On RLJ Using Covered Calls
Expiration	Strike	Call Bid	Days	Cents/Day	Upside Potential
Oct 17	7.50	0.05	23	0.2	0.14 (1.9%)

10% Yield On RLJ Using Covered Calls
Expiration	Strike	Call Bid	Days	Cents/Day	Upside Potential
Oct 17	7.50	0.05	23	0.2	0.14 (1.9%)

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Want more examples? RLI Dividend | RLMD Dividend