Arthur J. Gallagher & Co. (NYSE:AJG) Declares Quarterly Dividend of $0.70

Key Points

• Arthur J. Gallagher declared a quarterly dividend of $0.70 per share, payable June 19 to shareholders of record on June 5 (ex-dividend June 5), equal to an annualized $2.80 and a yield of about 1.4%.
• The dividend appears well covered and stable: AJG has raised its payout for 15 consecutive years, grew dividends by an average of 0.1% annually over the past three years, and carries a dividend payout ratio near 20.6%.
• Shares recently traded around $203.02 (down $8.79), with a P/E of ~33.0, market cap of about $52.2B, and a consensus analyst target of roughly $273.94 (average rating "Moderate Buy").

Arthur J. Gallagher & Co. (NYSE:AJG - Get Free Report) announced a quarterly dividend on Wednesday, April 29th. Investors of record on Friday, June 5th will be paid a dividend of 0.70 per share by the financial services provider on Friday, June 19th. This represents a c) dividend on an annualized basis and a dividend yield of 1.4%. The ex-dividend date is Friday, June 5th.

Arthur J. Gallagher & Co. has increased its dividend payment by an average of 0.1%annually over the last three years and has raised its dividend annually for the last 15 consecutive years. Arthur J. Gallagher & Co. has a dividend payout ratio of 20.6% indicating that its dividend is sufficiently covered by earnings. Equities research analysts expect Arthur J. Gallagher & Co. to earn $14.71 per share next year, which means the company should continue to be able to cover its $2.80 annual dividend with an expected future payout ratio of 19.0%.

Arthur J. Gallagher & Co. Price Performance

Shares of AJG stock traded down $8.79 on Thursday, reaching $203.02. The company's stock had a trading volume of 645,743 shares, compared to its average volume of 2,252,964. The company has a quick ratio of 1.06, a current ratio of 1.06 and a debt-to-equity ratio of 0.52. Arthur J. Gallagher & Co. has a 12-month low of $195.00 and a 12-month high of $351.23. The company has a market capitalization of $52.20 billion, a P/E ratio of 33.02, a PEG ratio of 1.07 and a beta of 0.68. The stock's 50 day simple moving average is $217.48 and its 200-day simple moving average is $240.61.

Arthur J. Gallagher & Co. (NYSE:AJG - Get Free Report) last issued its quarterly earnings data on Thursday, January 29th. The financial services provider reported $2.38 earnings per share (EPS) for the quarter, topping analysts' consensus estimates of $2.35 by $0.03. Arthur J. Gallagher & Co. had a return on equity of 12.13% and a net margin of 11.84%.The company had revenue of $3.57 billion for the quarter, compared to the consensus estimate of $3.61 billion. During the same quarter last year, the business posted $1.12 earnings per share. The firm's revenue was up 33.9% compared to the same quarter last year. As a group, equities analysts predict that Arthur J. Gallagher & Co. will post 13.19 earnings per share for the current fiscal year.

Analysts Set New Price Targets

A number of equities research analysts have weighed in on AJG shares. Keefe, Bruyette & Woods lowered their price target on Arthur J. Gallagher & Co. from $249.00 to $246.00 and set a "market perform" rating on the stock in a research report on Tuesday, April 7th. Citigroup raised their price target on Arthur J. Gallagher & Co. from $277.00 to $280.00 and gave the company a "neutral" rating in a research report on Monday, February 2nd. Barclays raised their price target on Arthur J. Gallagher & Co. from $262.00 to $275.00 and gave the company an "overweight" rating in a research report on Wednesday, April 8th. Mizuho lowered their price target on Arthur J. Gallagher & Co. from $260.00 to $259.00 and set an "outperform" rating on the stock in a research report on Monday, April 13th. Finally, Cantor Fitzgerald reiterated a "neutral" rating on shares of Arthur J. Gallagher & Co. in a report on Friday, January 30th. Ten investment analysts have rated the stock with a Buy rating and nine have assigned a Hold rating to the company. According to MarketBeat.com, the company has an average rating of "Moderate Buy" and a consensus target price of $273.94.

Arthur J. Gallagher & Co. Company Profile

Arthur J. Gallagher & Co is a global insurance brokerage and risk management firm headquartered in Rolling Meadows, Illinois. Founded in 1927 by Arthur J. Gallagher, the company has grown from a regional broker into an international professional services organization that arranges insurance, provides consulting and designs risk-transfer solutions for commercial, industrial, public sector and individual clients.

The company's core activities include property and casualty insurance brokerage, employee benefits consulting and administration, and a range of risk management services.

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