GGG Dividend

Although GGG has a dividend of 0.16 with an ex-dividend date of Apr 12, 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 Mon 4:16 PM ET):

Graco, Inc (GGG)
Bid	Ask	Last	Change	Volume	P/E	Market Cap
47.85	47.87	47.85	+0.31	262K	24	7.9B

GGG Dividend-Like Income Using Covered Calls

With GGG at 47.85, here's a table showing how big the annual "dividend" (ie. 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%	1.44	0.4
5%	2.39	0.7
10%	4.79	1.3

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
Apr 18	50.00	0.10	25	0.4	2.13 (4.5%)
May 17	50.00	0.65	54	1.2	2.13 (4.5%)

5% Yield On GGG Using Covered Calls
Expiration	Strike	Call Bid	Days	Cents/Day	Upside Potential
May 17	50.00	0.65	54	1.2	2.13 (4.5%)
Aug 16	50.00	1.60	145	1.1	2.13 (4.5%)

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Want more examples? GGB Dividend | GHDX Dividend