The Company's businesses play an important role in the overall economy by supplying essential, infrastructure-related products and services ranging from barges, storage and distribution containers, construction aggregates, and highway products to wind towers, utility structures, railcars, railcar parts, and railcar leasing, management, and maintenance services.
(Summary) (Company) (Chart)
7 May 2017 Price $27.12 1yr Target $29.83 Analysts 6 Dividend $0.44 Payout Ratio % 1yr Cap Gain % Yield % 1yr Tot Return % P/E 14.20 PEG 1.42 Beta 2.20 | EPS (ttm) $1.91 EPS next yr $1.11 Forward P/E 24.43 EPS next 5yr 10.00% 1yr Price Support $ Market Cap $4.12 Bil Revenues $4.28 Bil Earnings $284.40 Mil Profit Margin % Quick Ratio --- Current Ratio --- Debt/Equity 0.77 | 1yr RevGR % 3yr RevGR % 5yr RevGR % 1yr EarnGR % 3yr EarnGR % 5yr EarnGR % 1yr DivGR % 3yr DivGR % 5yr DivGR % ROA 3.10% ROE 7.30% |
Trinity Industries (TRN) declares a $0.13/share quarterly dividend which is an 18.2% increase from its prior dividend of $0.11. The forward yield is now 1.92% and is payable on July 31 for shareholders of record July 14. The ex-div date is July 12.
My Strategy
This would be a tough stock to own the last two years because the the stock it a high in 2014 of $45 per share and then spent the next year and a half loosing two thirds of its value. But on the way down it found support at $25 per share before falling to it ultimate low. Now, as it recovers, it's found resistance near $30 per share but support at the $25 level once again. That could be the key to the trade in this security.
What makes an investment in Trinity Industries for me most interesting is its increasing dividend. It's been increasing its dividend, with the exception of 2010, since 2004. That's a pretty good track record. Now that the dividend is $0.13 per quarter the dividend is approaching 2%. By buying shares as close as possible to $25 per share the yield rises to 2.08% which is a level that's quite acceptable to me.
My strategy on these shares will be to sell puts with a strike price of $25. A beta of 2.20 will allow for a very nice return even if the puts are never exercised. Once ownership is taken, covered calls can easily be sold at a higher level for additional income. Done correctly these shares could produce a very nice return over time.