How To YieldBoost CSV From 1.4% To 18.3% Using Options
July 29, 2024 at 11:38 AM EDT
Shareholders of Carriage Services, Inc. (CSV) looking to boost their income beyond the stock's 1.4% annualized dividend yield can sell the January 2025 covered call at the $35 strike and collect the premium based on the $2.50 bid, which annualizes to an additional 16.9% rate of return against the current stock price (at Stock Options Channel we call this the YieldBoost), for a total of 18.3% annualized rate in the scenario where the stock is not called away..
