Arthur J. Gallagher & Co. (NYSE:AJG) to Issue Quarterly Dividend of $0.65

Key Points

• Arthur J. Gallagher & Co. declared a quarterly dividend of $0.65 per share, with shareholders of record on September 5th to receive the payment on September 19th, resulting in an annualized dividend of $2.60 and a yield of 0.91%.
• The company has a dividend payout ratio of 19.1%, indicating that its dividend is well-supported by earnings, with projected earnings of $13.26 per share next year to maintain a future payout ratio of 19.6%.
• Arthur J. Gallagher & Co. stock recently traded down 1.0% to $285.49, with analysts maintaining a consensus rating of "Hold" and a target price of $322.31.

Arthur J. Gallagher & Co. (NYSE:AJG - Get Free Report) declared a quarterly dividend on Wednesday, July 30th, RTT News reports. Stockholders of record on Friday, September 5th will be paid a dividend of 0.65 per share by the financial services provider on Friday, September 19th. This represents a c) dividend on an annualized basis and a dividend yield of 0.9%. The ex-dividend date of this dividend is Friday, September 5th.

Arthur J. Gallagher & Co. has a payout ratio of 19.1% indicating that its dividend is sufficiently covered by earnings. Research analysts expect Arthur J. Gallagher & Co. to earn $13.26 per share next year, which means the company should continue to be able to cover its $2.60 annual dividend with an expected future payout ratio of 19.6%.

Arthur J. Gallagher & Co. Stock Performance

Shares of NYSE AJG traded down $3.19 during trading hours on Friday, reaching $284.06. 2,787,751 shares of the stock were exchanged, compared to its average volume of 1,318,036. The firm has a market capitalization of $72.75 billion, a price-to-earnings ratio of 40.35 and a beta of 0.68. The company has a debt-to-equity ratio of 0.56, a quick ratio of 1.44 and a current ratio of 1.44. Arthur J. Gallagher & Co. has a 52 week low of $274.25 and a 52 week high of $351.23. The stock's fifty day simple moving average is $318.00 and its 200 day simple moving average is $322.86.

Arthur J. Gallagher & Co. (NYSE:AJG - Get Free Report) last issued its quarterly earnings results on Thursday, July 31st. The financial services provider reported $2.33 earnings per share (EPS) for the quarter, missing analysts' consensus estimates of $2.36 by ($0.03). The company had revenue of $3.18 billion for the quarter, compared to analyst estimates of $3.20 billion. Arthur J. Gallagher & Co. had a return on equity of 14.04% and a net margin of 14.54%. The company's quarterly revenue was up 16.0% compared to the same quarter last year. During the same period in the prior year, the company earned $2.29 EPS. Sell-side analysts predict that Arthur J. Gallagher & Co. will post 11.54 EPS for the current year.

Wall Street Analysts Forecast Growth

A number of brokerages recently issued reports on AJG. Wells Fargo & Company increased their price target on Arthur J. Gallagher & Co. from $371.00 to $373.00 and gave the stock an "overweight" rating in a research report on Friday. Piper Sandler increased their price target on Arthur J. Gallagher & Co. from $352.00 to $372.00 and gave the stock an "overweight" rating in a research report on Friday. Barclays reduced their target price on Arthur J. Gallagher & Co. from $346.00 to $327.00 and set an "equal weight" rating on the stock in a report on Monday, July 7th. Keefe, Bruyette & Woods raised their target price on Arthur J. Gallagher & Co. from $326.00 to $330.00 and gave the company a "market perform" rating in a report on Wednesday, July 9th. Finally, Erste Group Bank reaffirmed a "hold" rating on shares of Arthur J. Gallagher & Co. in a report on Wednesday, July 23rd. One analyst has rated the stock with a sell rating, seven have given a hold rating and five have issued a buy rating to the company. Based on data from MarketBeat, the stock currently has a consensus rating of "Hold" and a consensus target price of $329.75.

Arthur J. Gallagher & Co. Company Profile

Arthur J. Gallagher & Co engages in the provision of insurance brokerage, reinsurance brokerage, consulting, and third-party claims settlement and administration services. It operates through the following segments: Brokerage, Risk Management, and Corporate. The Brokerage segment consists of retail and wholesale insurance brokerage operations.