TRIP Dividend Type Payments

TripAdvisor, Inc. dividend

Although TRIP has no upcoming (meaning, Board-approved and announced) dividends, you can sell covered calls on TripAdvisor, Inc. to create 12 extra dividend type payments per year to boost its yield. Let's look at some recent prices (last updated Thu 10:45 AM ET):

TripAdvisor, Inc. (TRIP)
Bid Ask Last Change Volume P/E Market Cap
15.30 15.31 15.31 +0.05 209K 61 2.1B

TRIP Dividend-Like Income Using Covered Calls

With TRIP at 15.31, 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% 0.46 0.1
5% 0.77 0.2
10% 1.53 0.4

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 TRIP Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Feb 7 16.00 0.30 23 1.3 0.69 (4.5%)
Feb 14 16.00 0.55 30 1.8 0.69 (4.5%)
5% Yield On TRIP Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Feb 7 16.00 0.30 23 1.3 0.69 (4.5%)
Feb 14 16.00 0.55 30 1.8 0.69 (4.5%)
10% Yield On TRIP Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Feb 7 16.00 0.30 23 1.3 0.69 (4.5%)
Feb 14 16.00 0.55 30 1.8 0.69 (4.5%)

Want to increase dividends with covered calls?  Sign Up For A Free Trial

 
 
Top 10 Open Interest For Jan 17 Expiration     Top 5 High Yield
1.NVDA dividend 6.TSLA dividend   1.SERV dividend
2.SLV dividend 7.INTC dividend   2.RXRX dividend
3.SPY dividend 8.XLF dividend   3.XP dividend
4.AAPL dividend 9.IWM dividend   4.ENVX dividend
5.EEM dividend 10.TLT dividend   5.QUBT dividend

Want more examples? TRIB Dividend | TRMB Dividend