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

Key Points

• Arthur J. Gallagher declared a quarterly dividend of $0.70 per share, payable September 18 to shareholders of record on September 8. The payment represents a 1.0% annualized yield, and the company has raised its dividend for 15 consecutive years.
• The dividend appears well covered, with a current payout ratio of 20.6% and an expected future payout ratio of 18.9% based on projected earnings.
• Analysts maintain a generally positive view of AJG, with 13 Buy ratings and five Holds, producing a “Moderate Buy” consensus and an average price target of $280.35.

Arthur J. Gallagher & Co. (NYSE:AJG - Get Free Report) declared a quarterly dividend on Wednesday, July 29th. Shareholders of record on Tuesday, September 8th will be given a dividend of 0.70 per share by the financial services provider on Friday, September 18th. This represents a c) annualized dividend and a yield of 1.0%. The ex-dividend date is Tuesday, September 8th.

Arthur J. Gallagher & Co. has increased its dividend payment by an average of 0.1%per year over the last three years and has raised its dividend every year for the last 15 years. Arthur J. Gallagher & Co. has a dividend payout ratio of 20.6% meaning its dividend is sufficiently covered by earnings. Research analysts expect Arthur J. Gallagher & Co. to earn $14.81 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 18.9%.

Arthur J. Gallagher & Co. Trading Up 1.4%

Shares of NYSE:AJG opened at $268.92 on Thursday. The company has a quick ratio of 1.06, a current ratio of 1.06 and a debt-to-equity ratio of 0.51. Arthur J. Gallagher & Co. has a 12-month low of $190.75 and a 12-month high of $313.55. The firm has a fifty day moving average of $229.80 and a two-hundred day moving average of $224.96. The firm has a market capitalization of $69.09 billion, a P/E ratio of 43.51, a price-to-earnings-growth ratio of 1.37 and a beta of 0.50.

Arthur J. Gallagher & Co. (NYSE:AJG - Get Free Report) last issued its quarterly earnings data on Thursday, April 30th. The financial services provider reported $4.47 earnings per share for the quarter, beating analysts' consensus estimates of $4.43 by $0.04. The business had revenue of $4.71 billion for the quarter, compared to the consensus estimate of $4.73 billion. Arthur J. Gallagher & Co. had a return on equity of 12.83% and a net margin of 10.76%.The firm's revenue was up 29.0% compared to the same quarter last year. During the same period last year, the business earned $3.67 EPS. On average, equities analysts expect that Arthur J. Gallagher & Co. will post 13.22 EPS for the current fiscal year.

Analyst Ratings Changes

Several brokerages have commented on AJG. Weiss Ratings raised Arthur J. Gallagher & Co. from a "hold (c-)" rating to a "hold (c)" rating in a research report on Monday, July 13th. Truist Financial cut their target price on shares of Arthur J. Gallagher & Co. from $235.00 to $225.00 and set a "hold" rating for the company in a research note on Friday, May 1st. Morgan Stanley raised their price target on shares of Arthur J. Gallagher & Co. from $240.00 to $255.00 and gave the stock an "overweight" rating in a research report on Monday, July 6th. Jefferies Financial Group raised Arthur J. Gallagher & Co. from a "hold" rating to a "buy" rating and lifted their target price for the stock from $235.00 to $265.00 in a research report on Thursday, June 11th. Finally, UBS Group upped their price target on Arthur J. Gallagher & Co. from $250.00 to $291.00 and gave the company a "buy" rating in a report on Wednesday, July 8th. Thirteen analysts have rated the stock with a Buy rating and five have assigned a Hold rating to the company. According to data from MarketBeat, Arthur J. Gallagher & Co. has an average rating of "Moderate Buy" and an average price target of $280.35.

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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