YieldBoost T. Rowe Price Group From 4.3% To 8.3% Using Options
July 09, 2024 at 11:36 AM EDT
Shareholders of T. Rowe Price Group Inc (TROW) looking to boost their income beyond the stock's 4.3% annualized dividend yield can sell the January 2026 covered call at the $135 strike and collect the premium based on the $6.90 bid, which annualizes to an additional 4% rate of return against the current stock price (at Stock Options Channel we call this the YieldBoost), for a total of 8.3% annualized rate in the scenario where the stock is not called away..
