Strategy To YieldBoost Barnes Group From 1.6% To 8.9% Using Options
July 30, 2024 at 11:43 AM EDT
Shareholders of Barnes Group Inc. (B) looking to boost their income beyond the stock's 1.6% annualized dividend yield can sell the March 2025 covered call at the $47.50 strike and collect the premium based on the $1.90 bid, which annualizes to an additional 7.3% rate of return against the current stock price (at Stock Options Channel we call this the YieldBoost), for a total of 8.9% annualized rate in the scenario where the stock is not called away..