YieldBoost Astec Industries From 1.5% To 11.3% Using Options
July 31, 2024 at 11:39 AM EDT
Shareholders of Astec Industries, Inc. (ASTE) looking to boost their income beyond the stock's 1.5% annualized dividend yield can sell the March 2025 covered call at the $40 strike and collect the premium based on the $2.15 bid, which annualizes to an additional 9.8% rate of return against the current stock price (at Stock Options Channel we call this the YieldBoost), for a total of 11.3% annualized rate in the scenario where the stock is not called away..