How To YieldBoost VSH From 2.2% To 15.7% Using Options
October 14, 2024 at 11:35 AM EDT
Shareholders of Vishay Intertechnology, Inc. (VSH) looking to boost their income beyond the stock's 2.2% annualized dividend yield can sell the January 2025 covered call at the $20 strike and collect the premium based on the 65 cents bid, which annualizes to an additional 13.6% rate of return against the current stock price (at Stock Options Channel we call this the YieldBoost), for a total of 15.7% annualized rate in the scenario where the stock is not called away..