GGG Dividend Type Payments

Graco Inc. dividend

Although GGG has no upcoming (meaning, Board-approved and announced) dividends, you can sell covered calls on Graco Inc. to create 12 extra dividend type payments per year to boost its yield. Let's look at some recent prices (last updated Mon 2:55 PM ET):

Graco Inc. (GGG)
Bid Ask Last Change Volume P/E Market Cap
75.95 76.08 76.05 -2.54 278K 28 13B

GGG Dividend-Like Income Using Covered Calls

With GGG at 76.05, 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% 2.28 0.6
5% 3.80 1.0
10% 7.61 2.1

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 GGG Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Aug 15 80.00 2.10 117 1.8 3.92 (5.2%)
May 16 85.00 0.20 26 0.8 8.92 (11.7%)
5% Yield On GGG Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Aug 15 80.00 2.10 117 1.8 3.92 (5.2%)
Jun 20 80.00 2.00 61 3.3 3.92 (5.2%)
10% Yield On GGG Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Jun 20 80.00 2.00 61 3.3 3.92 (5.2%)

Want to increase dividends with covered calls?  Sign Up For A Free Trial

 
 
Top 10 Open Interest For May 16 Expiration     Top 5 High Yield
1.NVDA dividend 6.IWM dividend   1.BHVN dividend
2.SPY dividend 7.GLD dividend   2.STLA dividend
3.TLT dividend 8.FXI dividend   3.HOOD dividend
4.SLV dividend 9.TSLA dividend   4.UPST dividend
5.QQQ dividend 10.KWEB dividend   5.VRT dividend

Want more examples? GGB Dividend | GGR Dividend