TRV Dividend

TRAVELERS COMPANIES dividend

Although TRV has a dividend of 0.77 with an ex-dividend date of Sep 7, you can sell covered calls on TRAVELERS COMPANIES to create 12 extra dividend type payments per year to boost its yield. Let's look at some recent prices (last updated Wed 4:16 PM ET):

TRAVELERS COMPANIES (TRV)
Bid Ask Last Change Volume P/E Market Cap
127.81 129.30 128.77 +1.23 1.2M 17 34B

TRV Dividend-Like Income Using Covered Calls

With TRV at 128.77, 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% 3.86 1.1
5% 6.44 1.8
10% 12.88 3.5

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
Aug 17 130.00 0.15 3 5.0 0.70 (0.5%)
Sep 21 130.00 1.75 38 4.6 0.70 (0.5%)
5% Yield On TRV Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Aug 17 130.00 0.15 3 5.0 0.70 (0.5%)
Sep 21 130.00 1.75 38 4.6 0.70 (0.5%)
10% Yield On TRV Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Aug 17 130.00 0.15 3 5.0 0.70 (0.5%)
Sep 21 130.00 1.75 38 4.6 0.70 (0.5%)

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Want more examples? TRUP Dividend | TRVCI Dividend