YieldBoost Franklin Resources From 0.9% To 5.4% Using Options
August 20, 2014 at 11:23 AM EDT
Shareholders of Franklin Resources, Inc. (BEN) looking to boost their income beyond the stock's 0.9% annualized dividend yield can sell the January 2016 covered call at the $60 strike and collect the premium based on the $3.50 bid, which annualizes to an additional 4.5% rate of return against the current stock price (at Stock Options Channel we call this the YieldBoost), for a total of 5.4% annualized rate in the scenario where the stock is not called away..