TRIP Dividend Type Payments
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 Fri 10:55 AM ET):
| TripAdvisor, Inc. (TRIP) | ||||||
|---|---|---|---|---|---|---|
| Bid | Ask | Last | Change | Volume | P/E | Market Cap |
| 25.27 | 25.28 | 25.27 | +0.02 | 237K | 316 | 3.5B |
TRIP Dividend-Like Income Using Covered Calls
With TRIP at 25.27, 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% | 0.76 | 0.2 |
| 5% | 1.26 | 0.3 |
| 10% | 2.53 | 0.7 |
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 | |
| Apr 26 | 26.00 | 0.25 | 8 | 3.1 | 0.72 (2.8%) | |
| May 3 | 26.00 | 0.45 | 15 | 3.0 | 0.72 (2.8%) | |
| 5% Yield On TRIP Using Covered Calls | ||||||
|---|---|---|---|---|---|---|
| Expiration | Strike | Call Bid | Days | Cents/Day | Upside Potential | |
| Apr 26 | 26.00 | 0.25 | 8 | 3.1 | 0.72 (2.8%) | |
| May 3 | 26.00 | 0.45 | 15 | 3.0 | 0.72 (2.8%) | |
| 10% Yield On TRIP Using Covered Calls | ||||||
|---|---|---|---|---|---|---|
| Expiration | Strike | Call Bid | Days | Cents/Day | Upside Potential | |
| Apr 26 | 26.00 | 0.25 | 8 | 3.1 | 0.72 (2.8%) | |
| May 3 | 26.00 | 0.45 | 15 | 3.0 | 0.72 (2.8%) | |
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| Top 10 Open Interest For May 17 Expiration | Top 5 High Yield | |||||
|---|---|---|---|---|---|---|
| 1. | HYG dividend | 6. | KWEB dividend | 1. | VNDA dividend | |
| 2. | IWM dividend | 7. | EEM dividend | 2. | CVNA dividend | |
| 3. | FXI dividend | 8. | SLV dividend | 3. | FSLY dividend | |
| 4. | QQQ dividend | 9. | TSLA dividend | 4. | CLSK dividend | |
| 5. | SPY dividend | 10. | EWZ dividend | 5. | EYPT dividend | |
Want more examples? TRIB Dividend | TRMB Dividend
