TRTN Dividend

Although TRTN has a dividend of 0.52 with an ex-dividend date of Aug 31, you can sell covered calls on TRITON INTL LTD to create 12 extra dividend type payments per year to boost its yield. Let's look at some recent prices (last updated Thu 11:15 AM ET):

TRITON INTL LTD (TRTN)
Bid Ask Last Change Volume P/E Market Cap
36.99 37.05 37.03 +0.51 88K 6.3 3.0B

TRTN Dividend-Like Income Using Covered Calls

With TRTN at 37.03, 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% 1.11 0.3
5% 1.85 0.5
10% 3.70 1.0

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 TRTN Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Sep 21 40.00 0.35 37 0.9 2.95 (8.0%)
Oct 19 40.00 0.80 65 1.2 2.95 (8.0%)
5% Yield On TRTN Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Sep 21 40.00 0.35 37 0.9 2.95 (8.0%)
Oct 19 40.00 0.80 65 1.2 2.95 (8.0%)
10% Yield On TRTN Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Oct 19 40.00 0.80 65 1.2 2.95 (8.0%)
Jan 18 40.00 1.95 156 1.3 2.95 (8.0%)

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