How To YieldBoost Agilent Technologies From 1.2% To 6.1% Using Options
November 22, 2016 at 11:34 AM EST
Shareholders of Agilent Technologies, Inc. (A) looking to boost their income beyond the stock's 1.2% annualized dividend yield can sell the January 2018 covered call at the $50 strike and collect the premium based on the $2.51 bid, which annualizes to an additional 4.9% rate of return against the current stock price (at Stock Options Channel we call this the YieldBoost), for a total of 6.1% annualized rate in the scenario where the stock is not called away..