YieldBoost FDS From 0.8% To 8.9% Using Options
March 18, 2024 at 11:41 AM EDT
Shareholders of FactSet Research Systems Inc. (FDS) looking to boost their income beyond the stock's 0.8% annualized dividend yield can sell the November covered call at the $510 strike and collect the premium based on the $25.80 bid, which annualizes to an additional 8.1% rate of return against the current stock price (at Stock Options Channel we call this the YieldBoost), for a total of 8.9% annualized rate in the scenario where the stock is not called away..
