How To YieldBoost EMR From 3.2% To 5.3% Using Options
July 19, 2017 at 11:34 AM EDT
Shareholders of Emerson Electric Co. (EMR) looking to boost their income beyond the stock's 3.2% annualized dividend yield can sell the January 2019 covered call at the $70 strike and collect the premium based on the $1.90 bid, which annualizes to an additional 2.1% rate of return against the current stock price (at Stock Options Channel we call this the YieldBoost), for a total of 5.3% annualized rate in the scenario where the stock is not called away..