GATX - GATX: The Yield Doesn't Compensate For The Risk

• I think GATX is a wonderful business with an illustrious dividend history. The business also seems to be well insulated against the economic harm caused by COVID-19.
• That said, investors don't buy a company's future cash flows directly. They buy the stock, and the stock is often a poor proxy for the health of the underlying business.
• The last time the shares were trading at current multiples, they went on to underperform. History may not repeat, but it often rhymes.
• The history of my GATX short put trades reveals how these simultaneously enhance returns while lowering risk.

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