AJG Dividend
Although AJG has a dividend of 0.60 with an ex-dividend date of Jun 7, 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 11:15 AM ET):
Arthur J. Gallagher & Co. (AJG) | ||||||
---|---|---|---|---|---|---|
Bid | Ask | Last | Change | Volume | P/E | Market Cap |
233.42 | 234.24 | 233.45 | -3.50 | 391K | 54 | 51B |
AJG Dividend-Like Income Using Covered Calls
With AJG at 233.45, 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% | 7.00 | 1.9 |
5% | 11.67 | 3.2 |
10% | 23.35 | 6.4 |
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 17 | 240.00 | 1.85 | 22 | 8.4 | 5.76 (2.5%) | |
Jun 21 | 240.00 | 4.10 | 57 | 7.2 | 5.76 (2.5%) |
5% Yield On AJG Using Covered Calls | ||||||
---|---|---|---|---|---|---|
Expiration | Strike | Call Bid | Days | Cents/Day | Upside Potential | |
May 17 | 240.00 | 1.85 | 22 | 8.4 | 5.76 (2.5%) | |
Jun 21 | 240.00 | 4.10 | 57 | 7.2 | 5.76 (2.5%) |
10% Yield On AJG Using Covered Calls | ||||||
---|---|---|---|---|---|---|
Expiration | Strike | Call Bid | Days | Cents/Day | Upside Potential | |
May 17 | 240.00 | 1.85 | 22 | 8.4 | 5.76 (2.5%) | |
Jun 21 | 240.00 | 4.10 | 57 | 7.2 | 5.76 (2.5%) |
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Top 10 Open Interest For May 17 Expiration | Top 5 High Yield | |||||
---|---|---|---|---|---|---|
1. | IWM dividend | 6. | EEM dividend | 1. | ENVX dividend | |
2. | HYG dividend | 7. | KWEB dividend | 2. | WOLF dividend | |
3. | QQQ dividend | 8. | SLV dividend | 3. | FSLY dividend | |
4. | SPY dividend | 9. | TSLA dividend | 4. | CGC dividend | |
5. | FXI dividend | 10. | NVDA dividend | 5. | DJT dividend |
Want more examples? AIZ Dividend | AJX Dividend