YieldBoost PCAR From 1.1% To 6.2% Using Options
June 10, 2024 at 11:38 AM EDT
Shareholders of PACCAR Inc. (PCAR) looking to boost their income beyond the stock's 1.1% annualized dividend yield can sell the January 2026 covered call at the $126.80 strike and collect the premium based on the $8.70 bid, which annualizes to an additional 5.1% rate of return against the current stock price (at Stock Options Channel we call this the YieldBoost), for a total of 6.2% annualized rate in the scenario where the stock is not called away..
