RGR Dividend Type Payments

Sturm, Ruger & Company, Inc. dividend

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
34.05 37.05 35.66 -0.21 171K 20 0.6B

RGR Dividend-Like Income Using Covered Calls

With RGR at 35.66, 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% 1.07 0.3
5% 1.78 0.5
10% 3.57 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
Aug 15 40.00 0.40 85 0.5 2.95 (8.3%)
Oct 17 40.00 1.00 148 0.7 2.95 (8.3%)
5% Yield On RGR Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Oct 17 40.00 1.00 148 0.7 2.95 (8.3%)
Nov 21 40.00 1.10 183 0.6 2.95 (8.3%)

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Want more examples? RGP Dividend | RH Dividend