Daily Stock Analysis: Trinity Industries - Tuesday, April 13

landscape photography of train railway

Source: Unsplash 

Trinity Industries Inc has the ticker symbol TRN and is a member of the Industrials sector as a railroad company. This is my second report on Trinity Industries Inc for this Vista portfolio. I last reported on them on February 10th.

Trinity Industries Inc sells and leases railroad products and railcar maintenance services in North America. 

The company operates under the name TrinityRail in three main segments: railcar leasing and management services, which owns railcars and provides fleet management and administration services; rail products, which builds, sells, and modifies freight and tank railcars and their components; and all other, which sells highway products such as guardrail and other highway barriers. 

Customers include railroads, leasing companies, and shipping companies in the industries of agriculture, construction, consumer products, energy, and chemicals.

It sells or leases products and services through its own sales personnel and independent sales representatives. 

Trinity Industries, Inc. was incorporated in 1933 and is headquartered in Dallas, Texas.

Three key data points gauge dividend equities or funds like Trinity Industries Inc:

(1) Price

(2) Dividends

(3) Returns

Those three basic keys best tell whether a company has made, is making, and will make money. 

TRN Price

Trinity Industries Inc's price per share closed at $29.08 Friday. One year ago its price was $17.20. Price per share has increased about 69% from the midst of last year's COVID market slump. 

Should Trinity's stock trade in the range of $15.00 to $35.00 this year, its recent $29.08 price might rise by $1.92 to reach $31.00 by April 13, 2022. My estimate is however $ 0.25 lower than the median of five estimates from analysts tracking the stock.

TRN Dividends

Trinity's most recent declared quarterly dividend payable April 30th is $0.19, which equates to $0.76 annually and yields 2.61% at yesterday's $29.08 closing price. TRN has paid quarterly dividends increasing annually for 11 years.

TRN Returns

Adding the $0.76 annual TRN anticipated dividend to my $1.92 price upside estimate shows a $2.68  potential gross gain, per share, to be reduced by any costs to trade the shares.  

Put little under $1,000.00 today in Trinity Industries Inc at $29.08 per share and we'd buy 34 shares of TRN stock.

A $10 broker fee (if charged) would be paid half at purchase and half at a sale and might cost us about $0.29 per share.

Subtract that maybe $0.29 brokerage cost from my estimated $2.68 gross gain per share results in a net gain of $2.39 X 34 shares = $81.26 for an 8.13% net gain on a $988.72 investment.

Trinity Industries Inc shows a possible 8.13% net gain including a 2.61% dividend yield. 

Over the next year at this time, a $1000 investment in TRN could generate $26.10 in cash dividends. And a single share bought at yesterday's closing price was $29.08! So, if TRN is your kind of industrials investment, their single share price is about two dollars over the annual dividend income from $1,000 invested. This suggests waiting for the price to drop at least one dollar before adding TRN to your holdings

All of the estimates above are speculation based on the past history of Trinity Industries Inc. Only time and money invested in this stock will determine its worth.

Disclaimer: This article is for informational and educational purposes only and should not be construed to constitute investment advice. Nothing contained herein shall constitute a solicitation, ...

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