RGR Dividend Type Payments

Sturm Ruger, Inc dividend

Although RGR has no upcoming (meaning, Board-approved and announced) dividends, you can sell covered calls on Sturm Ruger, Inc to create 12 extra dividend type payments per year to boost its yield. Let's look at some recent prices (last updated Wed 12:15 PM ET):

Sturm Ruger, Inc (RGR)
Bid Ask Last Change Volume P/E Market Cap
58.95 59.05 59.00 -0.05 31K 21 1.0B

RGR Dividend-Like Income Using Covered Calls

With RGR at 59.00, 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% 1.77 0.5
5% 2.95 0.8
10% 5.90 1.6

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
Mar 15 65.00 0.30 24 1.3 5.95 (10.1%)
Apr 18 67.50 0.30 58 0.5 8.45 (14.3%)
5% Yield On RGR Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Mar 15 65.00 0.30 24 1.3 5.95 (10.1%)
Apr 18 65.00 0.65 58 1.1 5.95 (10.1%)
10% Yield On RGR Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Mar 15 62.50 0.75 24 3.1 3.45 (5.8%)
Apr 18 62.50 1.25 58 2.2 3.45 (5.8%)

Want to increase dividends with covered calls?  Sign Up For A Free Trial

 
Top 10 Open Interest For Mar 15 Expiration     Top 5 High Yield
1.SPX dividend 6.EWZ dividend   1.ROKU dividend
2.EEM dividend 7.GE dividend   2.VIPS dividend
3.SPY dividend 8.BAC dividend   3.FSLR dividend
4.QQQ dividend 9.XOP dividend   4.IQ dividend
5.FXI dividend 10.LLY dividend   5.APHA dividend

Want more examples? RGNX Dividend | RGS Dividend