How To YieldBoost WCC From 0.8% To 12.1% Using Options
November 27, 2024 at 11:36 AM EST
Shareholders of Wesco International, Inc. (WCC) looking to boost their income beyond the stock's 0.8% annualized dividend yield can sell the August 2025 covered call at the $240 strike and collect the premium based on the $16.80 bid, which annualizes to an additional 11.3% rate of return against the current stock price (at Stock Options Channel we call this the YieldBoost), for a total of 12.1% annualized rate in the scenario where the stock is not called away..
