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
40.50 43.15 41.32 -1.09 197K 137 0.7B

RGR Dividend-Like Income Using Covered Calls

With RGR at 41.32, 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% 1.24 0.3
5% 2.07 0.6
10% 4.13 1.1

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
Dec 19 45.00 0.95 47 2.0 1.85 (4.5%)
Nov 21 45.00 0.50 19 2.6 1.85 (4.5%)
5% Yield On RGR Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Dec 19 45.00 0.95 47 2.0 1.85 (4.5%)
Nov 21 45.00 0.50 19 2.6 1.85 (4.5%)
10% Yield On RGR Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Dec 19 45.00 0.95 47 2.0 1.85 (4.5%)
Nov 21 45.00 0.50 19 2.6 1.85 (4.5%)

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Want more examples? RGP Dividend | RH Dividend