PEB Dividend Type Payments

Pebblebrook Hotel Trust Common Shares of Beneficial Interest dividend

Although PEB has no upcoming (meaning, Board-approved and announced) dividends, you can sell covered calls on Pebblebrook Hotel 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 Wed 4:16 PM ET):

Pebblebrook Hotel Trust Common Shares of Beneficial Interest (PEB)
Bid Ask Last Change Volume P/E Market Cap
9.89 10.62 10.07 -0.07 1.2M - 1.2B

PEB Dividend-Like Income Using Covered Calls

With PEB at 10.07, 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% 0.30 0.1
5% 0.50 0.1
10% 1.01 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 PEB Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Dec 19 12.50 0.20 122 0.2 1.88 (18.7%)
5% Yield On PEB Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Dec 19 12.50 0.20 122 0.2 1.88 (18.7%)

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Want more examples? PDS Dividend | PEBO Dividend