TRP Dividend

TransCanada Corp dividend

Although TRP has a dividend of 0.56 with an ex-dividend date of Mar 28, you can sell covered calls on TransCanada Corp to create 12 extra dividend type payments per year to boost its yield. Let's look at some recent prices (last updated Tue 1:25 PM ET):

TransCanada Corp (TRP)
Bid Ask Last Change Volume P/E Market Cap
42.99 43.00 43.00 +0.18 561K 15 40B

TRP Dividend-Like Income Using Covered Calls

With TRP at 43.00, here's a table showing how big the annual "dividend" (ie. 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% 1.29 0.4
5% 2.15 0.6
10% 4.30 1.2

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 TRP Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
May 17 45.00 0.50 88 0.6 2.00 (4.7%)
Aug 16 45.00 1.05 179 0.6 2.00 (4.7%)

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Want more examples? TROX Dividend | TRQ Dividend