YieldBoost HVT From 1.2% To 8.8% Using Options
July 01, 2014 at 12:00 PM EDT
Shareholders of Haverty Furniture Cos., Inc. (HVT) looking to boost their income beyond the stock's 1.2% annualized dividend yield can sell the February 2015 covered call at the $30 strike and collect the premium based on the $1.25 bid, which annualizes to an additional 7.5% rate of return against the current stock price (at Stock Options Channel we call this the YieldBoost), for a total of 8.8% annualized rate in the scenario where the stock is not called away..