YieldBoost Fresh Del Monte Produce From 1.3% To 12% Using Options
December 12, 2017 at 11:33 AM EST
Shareholders of Fresh Del Monte Produce Inc. (FDP) looking to boost their income beyond the stock's 1.3% annualized dividend yield can sell the June 2018 covered call at the $50 strike and collect the premium based on the $2.60 bid, which annualizes to an additional 10.8% rate of return against the current stock price (at Stock Options Channel we call this the YieldBoost), for a total of 12% annualized rate in the scenario where the stock is not called away..