AJG Dividend

Arthur J. Gallagher & Co. dividend

Although AJG has a dividend of 0.65 with an ex-dividend date of Jun 6, 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 12:10 PM ET):

Arthur J. Gallagher & Co. (AJG)
Bid Ask Last Change Volume P/E Market Cap
326.13 326.47 326.31 -11.87 552K 52 87B

AJG Dividend-Like Income Using Covered Calls

With AJG at 326.31, 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% 9.79 2.7
5% 16.32 4.5
10% 32.63 8.9

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
May 16 330.00 1.75 5 35.0 3.53 (1.1%)
Oct 17 330.00 18.50 159 11.6 3.53 (1.1%)
5% Yield On AJG Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
May 16 330.00 1.75 5 35.0 3.53 (1.1%)
Oct 17 330.00 18.50 159 11.6 3.53 (1.1%)
10% Yield On AJG Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
May 16 330.00 1.75 5 35.0 3.53 (1.1%)
Oct 17 330.00 18.50 159 11.6 3.53 (1.1%)

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