YieldBoost International Flavors & Fragrances From 1.9% To 7.4% Using Options
November 23, 2015 at 11:33 AM EST
Shareholders of International Flavors & Fragrances Inc. (IFF) looking to boost their income beyond the stock's 1.9% annualized dividend yield can sell the May 2016 covered call at the $125 strike and collect the premium based on the $3.20 bid, which annualizes to an additional 5.5% 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..