How To YieldBoost Interpublic Group of Companies From 4.3% To 7.2% Using Options
July 18, 2024 at 11:39 AM EDT
Shareholders of Interpublic Group of Companies Inc. (IPG) looking to boost their income beyond the stock's 4.3% annualized dividend yield can sell the January 2025 covered call at the $34 strike and collect the premium based on the 45 cents bid, which annualizes to an additional 2.9% rate of return against the current stock price (at Stock Options Channel we call this the YieldBoost), for a total of 7.2% annualized rate in the scenario where the stock is not called away..