Strategy To YieldBoost Hyster-Yale Materials Handling From 1.5% To 10.1% Using Options
March 19, 2015 at 11:31 AM EDT
Shareholders of Hyster-Yale Materials Handling, Inc. (HY) looking to boost their income beyond the stock's 1.5% annualized dividend yield can sell the September covered call at the $80 strike and collect the premium based on the $3.10 bid, which annualizes to an additional 8.6% rate of return against the current stock price (at Stock Options Channel we call this the YieldBoost), for a total of 10.1% annualized rate in the scenario where the stock is not called away..