AJG Dividend Type Payments

Arthur J. Gallagher & Co. dividend

Although AJG has no upcoming (meaning, Board-approved and announced) dividends, you can sell covered calls on Arthur J. Gallagher & Co. to create 12 extra dividend type payments per year to boost its yield. Let's look at some recent prices (last updated Tue 4:16 PM ET):

Arthur J. Gallagher & Co. (AJG)
Bid Ask Last Change Volume P/E Market Cap
280.00 306.00 291.46 +2.06 1.2M 44 74B

AJG Dividend-Like Income Using Covered Calls

With AJG at 291.46, here's a table showing how big the annual "dividend" (i.e. total annual call premium received) would need to be to attain 3%, 5%, and 10% annual yields. Also shown is the equivalent number of cents/day necessary to achieve each yield:

Annual Yield Annual Premium Cents/Day
3% 8.74 2.4
5% 14.57 4.0
10% 29.15 8.0

So now we need to find out of the money covered calls that pay at least the prescribed cents/day amount of time premium. That will generate income and, because they are out of the money, leave room for some upside potential on the stock. Here are some examples:

3% Yield On AJG Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Oct 17 310.00 2.25 32 7.0 4.00 (1.4%)
Sep 19 310.00 0.10 4 2.5 4.00 (1.4%)
5% Yield On AJG Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Oct 17 310.00 2.25 32 7.0 4.00 (1.4%)
Dec 19 310.00 7.60 95 8.0 4.00 (1.4%)
10% Yield On AJG Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Dec 19 310.00 7.60 95 8.0 4.00 (1.4%)

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