YieldBoost Brown-Forman From 2% To 14.1% Using Options
June 18, 2024 at 12:45 PM EDT
Shareholders of Brown-Forman Corp (BF. ) looking to boost their income beyond the stock's 2% annualized dividend yield can sell the September covered call at the $45 strike and collect the premium based on the $1.35 bid, which annualizes to an additional 12.1% rate of return against the current stock price (at Stock Options Channel we call this the YieldBoost), for a total of 14.1% annualized rate in the scenario where the stock is not called away.
