TRV Dividend Type Payments

The Travelers Companies, Inc. dividend

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 Mon 4:16 PM ET):

The Travelers Companies, Inc. (TRV)
Bid Ask Last Change Volume P/E Market Cap
241.86 273.00 265.14 +1.67 824K 14 60B

TRV Dividend-Like Income Using Covered Calls

With TRV at 265.14, 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% 7.95 2.2
5% 13.26 3.6
10% 26.51 7.3

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
Oct 17 280.00 6.80 124 5.5 7.00 (2.6%)
Jul 18 280.00 2.25 33 6.8 7.00 (2.6%)
5% Yield On TRV Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Oct 17 280.00 6.80 124 5.5 7.00 (2.6%)
Jul 18 280.00 2.25 33 6.8 7.00 (2.6%)

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