RLJ Dividend Type Payments

RLJ Lodging Trust Common Shares of Beneficial Interest $0.01 par value dividend

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
9.26 9.83 9.55 +0.28 1.9M 34 1.4B

RLJ Dividend-Like Income Using Covered Calls

With RLJ at 9.55, 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% 0.29 0.1
5% 0.48 0.1
10% 0.96 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 15 10.00 0.40 162 0.2 0.17 (1.8%)
May 16 10.00 0.20 71 0.3 0.17 (1.8%)
5% Yield On RLJ Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Aug 15 10.00 0.40 162 0.2 0.17 (1.8%)
May 16 10.00 0.20 71 0.3 0.17 (1.8%)
10% Yield On RLJ Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
May 16 10.00 0.20 71 0.3 0.17 (1.8%)

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