RGR Dividend Type Payments

Sturm, Ruger & Company, Inc. dividend

Although RGR has no upcoming (meaning, Board-approved and announced) dividends, you can sell covered calls on Sturm, Ruger & Company, 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):

Sturm, Ruger & Company, Inc. (RGR)
Bid Ask Last Change Volume P/E Market Cap
35.01 37.51 35.94 -1.27 292K 20 0.6B

RGR Dividend-Like Income Using Covered Calls

With RGR at 35.94, 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% 1.08 0.3
5% 1.80 0.5
10% 3.59 1.0

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
Oct 17 40.00 0.55 117 0.5 2.49 (6.9%)
Nov 21 40.00 1.10 152 0.7 2.49 (6.9%)
5% Yield On RGR Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Nov 21 40.00 1.10 152 0.7 2.49 (6.9%)
Jan 16 40.00 1.40 208 0.7 2.49 (6.9%)

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