YieldBoost SPG From 5% To 15.5% Using Options
September 12, 2024 at 11:37 AM EDT
Shareholders of Simon Property Group, Inc. (SPG) looking to boost their income beyond the stock's 5% annualized dividend yield can sell the June 2025 covered call at the $165 strike and collect the premium based on the $13.10 bid, which annualizes to an additional 10.4% rate of return against the current stock price (at Stock Options Channel we call this the YieldBoost), for a total of 15.5% annualized rate in the scenario where the stock is not called away..