AJG Dividend Type Payments
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 Fri 4:16 PM ET):
Arthur J. Gallagher & Co. (AJG) | ||||||
---|---|---|---|---|---|---|
Bid | Ask | Last | Change | Volume | P/E | Market Cap |
276.00 | 301.00 | 289.62 | +3.56 | 818K | 56 | 63B |
AJG Dividend-Like Income Using Covered Calls
With AJG at 289.62, 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% | 8.69 | 2.4 |
5% | 14.48 | 4.0 |
10% | 28.96 | 7.9 |
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 | |
Nov 15 | 300.00 | 4.50 | 43 | 8.1 | 0.00 (0.0%) | |
Jan 17 | 300.00 | 9.00 | 106 | 7.5 | 0.00 (0.0%) |
5% Yield On AJG Using Covered Calls | ||||||
---|---|---|---|---|---|---|
Expiration | Strike | Call Bid | Days | Cents/Day | Upside Potential | |
Nov 15 | 300.00 | 4.50 | 43 | 8.1 | 0.00 (0.0%) | |
Jan 17 | 300.00 | 9.00 | 106 | 7.5 | 0.00 (0.0%) |
10% Yield On AJG Using Covered Calls | ||||||
---|---|---|---|---|---|---|
Expiration | Strike | Call Bid | Days | Cents/Day | Upside Potential | |
Nov 15 | 300.00 | 4.50 | 43 | 8.1 | 0.00 (0.0%) |
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1. | NVDA dividend | 6. | EEM dividend | 1. | CLOV dividend | |
2. | IWM dividend | 7. | SLV dividend | 2. | AEHR dividend | |
3. | SPY dividend | 8. | SMCI dividend | 3. | APLD dividend | |
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5. | QQQ dividend | 10. | HYG dividend | 5. | WOLF dividend |
Want more examples? AIZ Dividend | AJX Dividend