Trade Recommendation: Triangle Capital Corporation
Today I am recommending the purchase of a new 30 Day Dividends position in shares of Triangle Capital Corporation (NYSE:TCAP). This is one of the stocks I track to find ex-dividend to ex-dividend swing trade prospects.
Some high-yield stocks show a repeating pattern of share price declines in the few weeks after they go ex-dividend and then the share values climb as the next ex-dividend date approaches. By buying when the shares are down after one ex-dividend and then selling before the next ex-date you can generate a return that is significantly higher than owning these stocks to earn the dividend payments.
TCAP currently yields 13.8% or 3.45% quarterly. Our target gain will be 7.5% above today’s closing price, or more than double the dividend yield. The goal is to hit the target before TCAP goes ex-dividend again on about December 7.
Recommendation: Buy shares of TCAP below $19.00
Sell when it hits a target price of $20.42 or no later than the next ex-dividend date.
I will send an email when I determine it is time to sell these shares.