RGR Dividend Type Payments
Although RGR has no upcoming (meaning, Board-approved and announced) dividends, you can sell covered calls on Sturm, Ruger & Company, Inc. 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):
| Sturm, Ruger & Company, Inc. (RGR) | ||||||
|---|---|---|---|---|---|---|
| Bid | Ask | Last | Change | Volume | P/E | Market Cap |
| 36.30 | 37.70 | 37.18 | +0.75 | 230K | 280 | 0.6B |
RGR Dividend-Like Income Using Covered Calls
With RGR at 37.18, 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% | 1.12 | 0.3 |
| 5% | 1.86 | 0.5 |
| 10% | 3.72 | 1.0 |
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 RGR Using Covered Calls | ||||||
|---|---|---|---|---|---|---|
| Expiration | Strike | Call Bid | Days | Cents/Day | Upside Potential | |
| Jan 16 | 40.00 | 0.10 | 8 | 1.3 | 2.30 (6.2%) | |
| Apr 17 | 40.00 | 1.35 | 99 | 1.4 | 2.30 (6.2%) | |
| 5% Yield On RGR Using Covered Calls | ||||||
|---|---|---|---|---|---|---|
| Expiration | Strike | Call Bid | Days | Cents/Day | Upside Potential | |
| Jan 16 | 40.00 | 0.10 | 8 | 1.3 | 2.30 (6.2%) | |
| Apr 17 | 40.00 | 1.35 | 99 | 1.4 | 2.30 (6.2%) | |
| 10% Yield On RGR Using Covered Calls | ||||||
|---|---|---|---|---|---|---|
| Expiration | Strike | Call Bid | Days | Cents/Day | Upside Potential | |
| Jan 16 | 40.00 | 0.10 | 8 | 1.3 | 2.30 (6.2%) | |
| Apr 17 | 40.00 | 1.35 | 99 | 1.4 | 2.30 (6.2%) | |
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| Top 10 Open Interest For Jan 16 Expiration | Top 5 High Yield | |||||
|---|---|---|---|---|---|---|
| 1. | NVDA dividend | 6. | AAPL dividend | 1. | LXEO dividend | |
| 2. | INTC dividend | 7. | SPY dividend | 2. | SOC dividend | |
| 3. | IBIT dividend | 8. | NFLX dividend | 3. | DAWN dividend | |
| 4. | TLT dividend | 9. | GLD dividend | 4. | TE dividend | |
| 5. | SLV dividend | 10. | QQQ dividend | 5. | CRVS dividend | |
Want more examples? RGP Dividend | RH Dividend
