YieldBoost Viad Corp. To 16.1% Using Options
August 21, 2014 at 11:38 AM EDT
Shareholders of Viad Corp. (VVI) looking to boost their income beyond the stock's 1.8% annualized dividend yield can sell the December covered call at the $22.50 strike and collect the premium based on the $1.05 bid, which annualizes to an additional 14.3% rate of return against the current stock price (at Stock Options Channel we call this the YieldBoost), for a total of 16.1% annualized rate in the scenario where the stock is not called away..