Strategy To YieldBoost Estee Lauder Cos., Inc. To 12.8% Using Options
July 03, 2024 at 12:16 PM EDT
Shareholders of Estee Lauder Cos., Inc. (EL) looking to boost their income beyond the stock's 2.5% annualized dividend yield can sell the March 2025 covered call at the $125 strike and collect the premium based on the $7.80 bid, which annualizes to an additional 10.3% rate of return against the current stock price (at Stock Options Channel we call this the YieldBoost), for a total of 12.8% annualized rate in the scenario where the stock is not called away..