YieldBoost Blackbaud To 13% Using Options
April 16, 2015 at 12:00 PM EDT
Shareholders of Blackbaud, Inc. (BLKB) looking to boost their income beyond the stock's 1% annualized dividend yield can sell the September covered call at the $50 strike and collect the premium based on the $2.50 bid, which annualizes to an additional 12% rate of return against the current stock price (at Stock Options Channel we call this the YieldBoost), for a total of 13% annualized rate in the scenario where the stock is not called away..