YieldBoost La-Z-Boy From 1.2% To 12.4% Using Options
September 25, 2015 at 11:43 AM EDT
Shareholders of La-Z-Boy Inc. (LZB) looking to boost their income beyond the stock's 1.2% annualized dividend yield can sell the January 2016 covered call at the $30 strike and collect the premium based on the 95 cents bid, which annualizes to an additional 11.2% rate of return against the current stock price (at Stock Options Channel we call this the YieldBoost), for a total of 12.4% annualized rate in the scenario where the stock is not called away..