TRV Dividend Type Payments
Although TRV has no upcoming (meaning, Board-approved and announced) dividends, you can sell covered calls on The Travelers Companies, Inc. to create 12 extra dividend type payments per year to boost its yield. Let's look at some recent prices (last updated Thu 12:35 PM ET):
| The Travelers Companies, Inc. (TRV) | ||||||
|---|---|---|---|---|---|---|
| Bid | Ask | Last | Change | Volume | P/E | Market Cap |
| 237.53 | 237.74 | 237.63 | +1.60 | 282K | 12 | 54B |
TRV Dividend-Like Income Using Covered Calls
With TRV at 237.63, 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% | 7.13 | 2.0 |
| 5% | 11.88 | 3.3 |
| 10% | 23.76 | 6.5 |
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 TRV Using Covered Calls | ||||||
|---|---|---|---|---|---|---|
| Expiration | Strike | Call Bid | Days | Cents/Day | Upside Potential | |
| Jan 17 | 240.00 | 5.70 | 30 | 19.0 | 2.26 (1.0%) | |
| Apr 17 | 240.00 | 13.60 | 120 | 11.3 | 2.26 (1.0%) | |
| 5% Yield On TRV Using Covered Calls | ||||||
|---|---|---|---|---|---|---|
| Expiration | Strike | Call Bid | Days | Cents/Day | Upside Potential | |
| Jan 17 | 240.00 | 5.70 | 30 | 19.0 | 2.26 (1.0%) | |
| Apr 17 | 240.00 | 13.60 | 120 | 11.3 | 2.26 (1.0%) | |
| 10% Yield On TRV Using Covered Calls | ||||||
|---|---|---|---|---|---|---|
| Expiration | Strike | Call Bid | Days | Cents/Day | Upside Potential | |
| Jan 17 | 240.00 | 5.70 | 30 | 19.0 | 2.26 (1.0%) | |
| Apr 17 | 240.00 | 13.60 | 120 | 11.3 | 2.26 (1.0%) | |
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| Top 10 Open Interest For Dec 20 Expiration | Top 5 High Yield | |||||
|---|---|---|---|---|---|---|
| 1. | NVDA dividend | 6. | EEM dividend | 1. | FDX dividend | |
| 2. | SPY dividend | 7. | IWM dividend | 2. | SERV dividend | |
| 3. | XLF dividend | 8. | TLT dividend | 3. | CLSK dividend | |
| 4. | QQQ dividend | 9. | TSLA dividend | 4. | PAYO dividend | |
| 5. | FXI dividend | 10. | KWEB dividend | 5. | CIFR dividend | |
Want more examples? TRUP Dividend | TRVG Dividend
