How To YieldBoost Badger Meter To 7.4% Using Options
February 27, 2015 at 11:36 AM EST
Shareholders of Badger Meter, Inc. (BMI) looking to boost their income beyond the stock's 1.3% annualized dividend yield can sell the August covered call at the $65 strike and collect the premium based on the $1.70 bid, which annualizes to an additional 6.1% rate of return against the current stock price (at Stock Options Channel we call this the YieldBoost), for a total of 7.4% annualized rate in the scenario where the stock is not called away..