GGG Dividend
Although GGG has a dividend of 0.28 with an ex-dividend date of Jul 21, 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 Tue 2:20 PM ET):
Graco Inc. (GGG) | ||||||
---|---|---|---|---|---|---|
Bid | Ask | Last | Change | Volume | P/E | Market Cap |
88.28 | 88.35 | 88.30 | +2.33 | 360K | 30 | 14B |
GGG Dividend-Like Income Using Covered Calls
With GGG at 88.30, 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% | 2.65 | 0.7 |
5% | 4.42 | 1.2 |
10% | 8.83 | 2.4 |
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 GGG Using Covered Calls | ||||||
---|---|---|---|---|---|---|
Expiration | Strike | Call Bid | Days | Cents/Day | Upside Potential | |
Aug 15 | 95.00 | 0.45 | 46 | 1.0 | 6.65 (7.5%) | |
Jul 18 | 90.00 | 0.55 | 18 | 3.1 | 1.65 (1.9%) |
5% Yield On GGG Using Covered Calls | ||||||
---|---|---|---|---|---|---|
Expiration | Strike | Call Bid | Days | Cents/Day | Upside Potential | |
Jul 18 | 90.00 | 0.55 | 18 | 3.1 | 1.65 (1.9%) | |
Nov 21 | 90.00 | 2.20 | 144 | 1.5 | 1.65 (1.9%) |
10% Yield On GGG Using Covered Calls | ||||||
---|---|---|---|---|---|---|
Expiration | Strike | Call Bid | Days | Cents/Day | Upside Potential | |
Jul 18 | 90.00 | 0.55 | 18 | 3.1 | 1.65 (1.9%) |
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Top 10 Open Interest For Jul 18 Expiration | Top 5 High Yield | |||||
---|---|---|---|---|---|---|
1. | NVDA dividend | 6. | GLD dividend | 1. | COGT dividend | |
2. | SLV dividend | 7. | AAPL dividend | 2. | EOSE dividend | |
3. | SPY dividend | 8. | TLT dividend | 3. | CIFR dividend | |
4. | IWM dividend | 9. | FXI dividend | 4. | STZ dividend | |
5. | TSLA dividend | 10. | QQQ dividend | 5. | BYON dividend |
Want more examples? GGB Dividend | GGOV Dividend