YieldBoost UFPI From 1.5% To 7.7% Using Options
April 13, 2015 at 11:34 AM EDT
Shareholders of Universal Forest Products Inc. (UFPI) looking to boost their income beyond the stock's 1.5% annualized dividend yield can sell the October covered call at the $60 strike and collect the premium based on the $1.70 bid, which annualizes to an additional 6.2% rate of return against the current stock price (at Stock Options Channel we call this the YieldBoost), for a total of 7.7% annualized rate in the scenario where the stock is not called away..