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 Mon 4:16 PM ET):
| Arthur J. Gallagher & Co. (AJG) | ||||||
|---|---|---|---|---|---|---|
| Bid | Ask | Last | Change | Volume | P/E | Market Cap |
| 286.44 | 301.81 | 298.00 | -3.74 | 1.2M | 46 | 77B |
AJG Dividend-Like Income Using Covered Calls
With AJG at 298.00, 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% | 8.94 | 2.4 |
| 5% | 14.90 | 4.1 |
| 10% | 29.80 | 8.2 |
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 | 0.50 | 5 | 10.0 | 8.19 (2.7%) | |
| Dec 19 | 310.00 | 8.00 | 68 | 11.8 | 8.19 (2.7%) | |
| 5% Yield On AJG Using Covered Calls | ||||||
|---|---|---|---|---|---|---|
| Expiration | Strike | Call Bid | Days | Cents/Day | Upside Potential | |
| Oct 17 | 310.00 | 0.50 | 5 | 10.0 | 8.19 (2.7%) | |
| Dec 19 | 310.00 | 8.00 | 68 | 11.8 | 8.19 (2.7%) | |
| 10% Yield On AJG Using Covered Calls | ||||||
|---|---|---|---|---|---|---|
| Expiration | Strike | Call Bid | Days | Cents/Day | Upside Potential | |
| Oct 17 | 310.00 | 0.50 | 5 | 10.0 | 8.19 (2.7%) | |
| Dec 19 | 310.00 | 8.00 | 68 | 11.8 | 8.19 (2.7%) | |
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| Top 10 Open Interest For Oct 17 Expiration | Top 5 High Yield | |||||
|---|---|---|---|---|---|---|
| 1. | NVDA dividend | 6. | TSLA dividend | 1. | ARCT dividend | |
| 2. | IBIT dividend | 7. | INTC dividend | 2. | NVTS dividend | |
| 3. | GLD dividend | 8. | QQQ dividend | 3. | HIVE dividend | |
| 4. | SPY dividend | 9. | IWM dividend | 4. | AAOI dividend | |
| 5. | SLV dividend | 10. | AMZN dividend | 5. | BTBT dividend | |
Want more examples? AIZ Dividend | AKAM Dividend
