How To YieldBoost Steelcase To 12.3% Using Options
October 02, 2024 at 11:49 AM EDT
Shareholders of Steelcase, Inc. (SCS) looking to boost their income beyond the stock's 3.1% annualized dividend yield can sell the April 2025 covered call at the $15 strike and collect the premium based on the 65 cents bid, which annualizes to an additional 9.2% rate of return against the current stock price (at Stock Options Channel we call this the YieldBoost), for a total of 12.3% annualized rate in the scenario where the stock is not called away..
