Why a 15% Dividend Wasn’t Enough to Keep This $3.3 Million Position

4 hours ago 1

Jonathan Ponciano, The Motley Fool

Fri, January 23, 2026 astatine 9:50 AM CST 4 min read

GraniteShares sold its full involvement of Trinity Capital during the 4th quarter.
The money reported that its holdings decreased by 212,465 shares worthy $3.29 million.
The presumption was antecedently 1.9% of the fund's AUM arsenic of the anterior quarter.
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GraniteShares Advisors LLC afloat exited its presumption successful Trinity Capital (NASDAQ:TRIN), selling 212,465 shares worthy an estimated $3.29 cardinal successful the 4th quarter.

According to a SEC filing dated January 20, GraniteShares Advisors sold 212,465 shares of Trinity Capital (NASDAQ:TRIN) during the 4th quarter. The money reported a quarter-end presumption worth alteration of $3.29 million, bringing its involvement successful Trinity Capital to zero.

Top holdings aft the filing:

NASDAQ:MSFT: $5.59 cardinal (3.4% of AUM)
NASDAQ:GOOGL: $4.25 cardinal (2.6% of AUM)
NASDAQ:META: $3.80 cardinal (2.3% of AUM)
NYSE:LLY: $3.08 cardinal (1.9% of AUM)
NYSE:UAN: $2.88 cardinal (1.7% of AUM)

As of Friday, shares of Trinity Capital were priced astatine $16.10, up 13% implicit the past year, compared to a 14% summation for the S&P 500.

Metric

Value

Revenue (TTM)	$284.52 million
Net Income (TTM)	$142.00 million
Dividend Yield	15%

Trinity Capital provides task indebtedness and instrumentality financing solutions to growth-stage companies, chiefly successful the exertion and innovation sectors.
The institution operates arsenic a concern improvement company, generating gross done involvement income, fees, and equity-related gains from its lending portfolio.
Its main customers are venture-backed businesses seeking non-dilutive superior to enactment enlargement and operational scaling.

Trinity Capital Inc. is simply a specialized lender focused connected providing flexible indebtedness superior to emerging maturation companies. Leveraging its expertise successful task debt, the steadfast supports innovative businesses that necessitate alternate financing beyond accepted equity. Its disciplined underwriting and diversified portfolio presumption the institution arsenic a cardinal spouse for high-growth enterprises seeking tailored backing solutions.

Trinity’s astir 15% dividend output mightiness usually beryllium capable to support income-focused investors glued to their seats, but that’s besides travel amid a terms show that’s lagged the broader market.

To beryllium clear, Trinity has executed well, generating beardown nett concern income and supporting an eye-catching payout. In its astir caller quarter, Trinity posted full concern income of $75.6 million, up much than 22% twelvemonth implicit year, with nett concern income rising astir 26% to $37.0 million. CEO Kyle Brown said the results reflected “disciplined execution and rigid underwriting,” pointing to beardown request crossed the firm’s recognition strategies.

However, task indebtedness is cyclical by design, and GraniteShares’ afloat exit suggests the dividend had already done its job. After a coagulated one-year instrumentality astir successful enactment with the broader market, the incremental upside was progressively tied to recognition conditions staying friendly. That’s a constrictive bet, particularly erstwhile safer income alternatives are offering competitory yields without task exposure.

Plus, much broadly, this portfolio skews toward large-cap maturation and liquid names, not niche recognition vehicles. In that framework, Trinity’s double-digit output reads little similar ballast and much similar attraction risk.