YieldBoost Independent Bank Group From 4% To 20% Using Options
May 02, 2024 at 11:31 AM EDT
Shareholders of Independent Bank Group Inc. (IBTX) looking to boost their income beyond the stock's 4% annualized dividend yield can sell the May covered call at the $65 strike and collect the premium based on the 25 cents bid, which annualizes to an additional 16% rate of return against the current stock price (at Stock Options Channel we call this the YieldBoost), for a total of 20% annualized rate in the scenario where the stock is not called away..