Strategy To YieldBoost PAHC From 2.3% To 19% Using Options
September 12, 2024 at 11:37 AM EDT
Shareholders of Phibro Animal Health Corp. (PAHC) looking to boost their income beyond the stock's 2.3% annualized dividend yield can sell the March 2025 covered call at the $22.50 strike and collect the premium based on the $1.85 bid, which annualizes to an additional 16.8% rate of return against the current stock price (at Stock Options Channel we call this the YieldBoost), for a total of 19% annualized rate in the scenario where the stock is not called away..