YieldBoost Brown-Forman From 1.8% To 12% Using Options
September 17, 2024 at 11:34 AM EDT
Shareholders of Brown-Forman Corp (BF. ) looking to boost their income beyond the stock's 1.8% annualized dividend yield can sell the December covered call at the $50 strike and collect the premium based on the $1.25 bid, which annualizes to an additional 10.2% rate of return against the current stock price (at Stock Options Channel we call this the YieldBoost), for a total of 12% annualized rate in the scenario where the stock is not called away.