GGG Dividend Type Payments

Graco Inc. dividend

Although GGG has no upcoming (meaning, Board-approved and announced) dividends, 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 2:30 PM ET):

Graco Inc. (GGG)
Bid Ask Last Change Volume P/E Market Cap
89.99 90.04 90.02 +0.40 794K 32 15B

GGG Dividend-Like Income Using Covered Calls

With GGG at 90.02, 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% 2.70 0.7
5% 4.50 1.2
10% 9.00 2.5

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
Dec 20 90.00 1.95 33 5.8 0.00 (0.0%)
May 16 90.00 3.30 180 1.8 0.00 (0.0%)
5% Yield On GGG Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Dec 20 90.00 1.95 33 5.8 0.00 (0.0%)
May 16 90.00 3.30 180 1.8 0.00 (0.0%)
10% Yield On GGG Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Dec 20 90.00 1.95 33 5.8 0.00 (0.0%)

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Want more examples? GGB Dividend | GGR Dividend