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

Key Points

• Arthur J. Gallagher will pay a quarterly dividend of $0.70 per share on December 18 to shareholders of record as of December 7. The annualized dividend is $2.80 per share, yielding approximately 1.1%.
• The company has raised its dividend for 15 consecutive years, with a 20.6% payout ratio, indicating the dividend is well covered by earnings.
• Wall Street maintains a “Moderate Buy” consensus on AJG, with 16 Buy ratings, five Holds, and an average price target of $280.74.

Arthur J. Gallagher & Co. (NYSE:AJG - Get Free Report) announced a quarterly dividend on Tuesday, October 27th. Investors of record on Monday, December 7th will be paid a dividend of $0.70 per share by the financial services provider on Friday, December 18th. This represents a $2.80 dividend on an annualized basis and a dividend yield of 1.1%. The ex-dividend date is Monday, December 7th.

Arthur J. Gallagher & Co. has increased its dividend payment by an average of 0.1% annually over the last three years and has increased 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 $14.77 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

NYSE:AJG opened at $259.26 on Wednesday. The stock has a market capitalization of $66.45 billion, a PE ratio of 43.00 and a beta of 0.55. Arthur J. Gallagher & Co. has a fifty-two week low of $190.75 and a fifty-two week high of $279.00. The business's 50-day simple moving average is $247.63 and its 200-day simple moving average is $232.50.

Arthur J. Gallagher & Co. (NYSE:AJG - Get Free Report) last issued its quarterly earnings results on Thursday, July 30th. The financial services provider reported $2.84 earnings per share (EPS) for the quarter, beating the consensus estimate of $2.81 by $0.03. The business had revenue of $3.95 billion during the quarter, compared to analyst estimates of $4.01 billion. The firm's quarterly revenue was up 24.3% on a year-over-year basis. During the same quarter in the previous year, the firm posted $2.33 earnings per share. On average, research analysts expect that Arthur J. Gallagher & Co. will post 13.16 earnings per share for the current year.

Wall Street Analyst Weigh In

Several brokerages have commented on AJG. Citigroup boosted their price objective on shares of Arthur J. Gallagher & Co. from $250.00 to $285.00 and gave the company a "buy" rating in a research report on Tuesday, August 4th. Oppenheimer began coverage on shares of Arthur J. Gallagher & Co. in a research note on Wednesday, October 7th. They issued a "market perform" rating on the stock. UBS Group boosted their price objective on Arthur J. Gallagher & Co. from $291.00 to $299.00 and gave the stock a "buy" rating in a research report on Monday, August 3rd. Morgan Stanley decreased their price objective on shares of Arthur J. Gallagher & Co. from $285.00 to $260.00 and set an "overweight" rating for the company in a research report on Tuesday, October 6th. Finally, Piper Sandler reiterated an "overweight" rating on shares of Arthur J. Gallagher & Co. in a report on Thursday, September 24th. Sixteen research analysts have rated the stock with a Buy rating and five have given a Hold rating to the company. According to data from MarketBeat.com, the company currently has a consensus rating of "Moderate Buy" and a consensus price target of $280.74.

Arthur J. Gallagher & Co. Company Profile

Arthur J. Gallagher & Co is a global insurance brokerage, risk management and consulting company. The firm helps businesses, public entities and individuals identify, manage and transfer risk through insurance and related services.

Its operations include retail insurance brokerage, employee benefits consulting, wholesale brokerage, reinsurance brokerage, claims administration and risk management consulting. Gallagher places commercial and personal insurance coverage and provides services related to property and casualty risks, health care, benefits, and other specialized insurance needs.

Founded in 1927 by Arthur J.

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