How To YieldBoost Tempur Sealy International From 1% To 6.2% Using Options
May 24, 2024 at 12:09 PM EDT
Shareholders of Tempur Sealy International, Inc. (TPX) looking to boost their income beyond the stock's 1% annualized dividend yield can sell the January 2026 covered call at the $65 strike and collect the premium based on the $4.20 bid, which annualizes to an additional 5.1% rate of return against the current stock price (at Stock Options Channel we call this the YieldBoost), for a total of 6.2% annualized rate in the scenario where the stock is not called away..