AJG Dividend

Although AJG has a dividend of 0.65 with an ex-dividend date of Sep 5, 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
273.97	299.92	289.44	-0.55	1.7M	44	74B

AJG Dividend-Like Income Using Covered Calls

With AJG at 289.44, 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%	8.68	2.4
5%	14.47	4.0
10%	28.94	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
Aug 15	300.00	0.55	8	6.9	0.08 (0.0%)
Oct 17	300.00	7.50	71	10.6	0.08 (0.0%)

5% Yield On AJG Using Covered Calls
Expiration	Strike	Call Bid	Days	Cents/Day	Upside Potential
Aug 15	300.00	0.55	8	6.9	0.08 (0.0%)
Oct 17	300.00	7.50	71	10.6	0.08 (0.0%)

10% Yield On AJG Using Covered Calls
Expiration	Strike	Call Bid	Days	Cents/Day	Upside Potential
Oct 17	300.00	7.50	71	10.6	0.08 (0.0%)
Sep 19	300.00	4.40	43	10.2	0.08 (0.0%)

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