YieldBoost Powell Industries To 16.1% Using Options
August 26, 2024 at 11:32 AM EDT
Shareholders of Powell Industries, Inc. (POWL) looking to boost their income beyond the stock's 0.5% annualized dividend yield can sell the February 2025 covered call at the $260 strike and collect the premium based on the $14.90 bid, which annualizes to an additional 15.6% rate of return against the current stock price (at Stock Options Channel we call this the YieldBoost), for a total of 16.1% annualized rate in the scenario where the stock is not called away..