OPI Dividend Type Payments
Although OPI has no upcoming (meaning, Board-approved and announced) dividends, you can sell covered calls on Office Properties Income Trust - Common Shares of Beneficial Interest 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):
| Office Properties Income Trust - Common Shares of Beneficial Interest (OPI) |
|---|
| Bid |
Ask |
Last |
Change |
Volume |
P/E |
Market Cap |
| 1.20 |
1.26 |
1.21 |
-0.04 |
762K |
- |
0.1B |
OPI Dividend-Like Income Using Covered Calls
With OPI at 1.21, 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% |
0.04 |
0.0 |
| 5% |
0.06 |
0.0 |
| 10% |
0.12 |
0.0 |
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 OPI Using Covered Calls |
|---|
| Expiration |
Strike |
Call Bid |
Days |
Cents/Day |
Upside Potential |
| Dec 20 |
1.50 |
0.05 |
36 |
0.1 |
0.24 (19.8%) |
| Jun 20 |
2.50 |
0.10 |
218 |
0.0 |
1.24 (102.5%) |
| 5% Yield On OPI Using Covered Calls |
|---|
| Expiration |
Strike |
Call Bid |
Days |
Cents/Day |
Upside Potential |
| Dec 20 |
1.50 |
0.05 |
36 |
0.1 |
0.24 (19.8%) |
| Jun 20 |
2.50 |
0.10 |
218 |
0.0 |
1.24 (102.5%) |
| 10% Yield On OPI Using Covered Calls |
|---|
| Expiration |
Strike |
Call Bid |
Days |
Cents/Day |
Upside Potential |
| Dec 20 |
1.50 |
0.05 |
36 |
0.1 |
0.24 (19.8%) |
| Jun 20 |
2.50 |
0.10 |
218 |
0.0 |
1.24 (102.5%) |
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