YieldBoost Astec Industries To 14.3% Using Options
December 19, 2014 at 11:49 AM EST
Shareholders of Astec Industries, Inc. (ASTE) looking to boost their income beyond the stock's 1.1% annualized dividend yield can sell the March 2015 covered call at the $40 strike and collect the premium based on the $1.25 bid, which annualizes to an additional 13.2% rate of return against the current stock price (at Stock Options Channel we call this the YieldBoost), for a total of 14.3% annualized rate in the scenario where the stock is not called away..