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 4:16 PM ET):

RLJ Lodging Trust Common Shares of Beneficial Interest $0.01 par value (RLJ)
Bid	Ask	Last	Change	Volume	P/E	Market Cap
7.04	7.37	7.26	+0.15	3.7M	26	1.1B

RLJ Dividend-Like Income Using Covered Calls

With RLJ at 7.26, 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%	0.36	0.1
10%	0.73	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
Aug 15	7.50	0.20	106	0.2	0.13 (1.8%)
Jun 20	7.50	0.20	50	0.4	0.13 (1.8%)

5% Yield On RLJ Using Covered Calls
Expiration	Strike	Call Bid	Days	Cents/Day	Upside Potential
Aug 15	7.50	0.20	106	0.2	0.13 (1.8%)
Jun 20	7.50	0.20	50	0.4	0.13 (1.8%)

10% Yield On RLJ Using Covered Calls
Expiration	Strike	Call Bid	Days	Cents/Day	Upside Potential
Jun 20	7.50	0.20	50	0.4	0.13 (1.8%)

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Want more examples? RLI Dividend | RLMD Dividend