YieldBoost Douglas Dynamics From 3.8% To 14.8% Using Options
November 14, 2014 at 11:38 AM EST
Shareholders of Douglas Dynamics, Inc. (PLOW) looking to boost their income beyond the stock's 3.8% annualized dividend yield can sell the December covered call at the $25 strike and collect the premium based on the 25 cents bid, which annualizes to an additional 11% rate of return against the current stock price (at Stock Options Channel we call this the YieldBoost), for a total of 14.8% annualized rate in the scenario where the stock is not called away..