How To YieldBoost WASH From 6.1% To 19.9% Using Options
December 02, 2024 at 11:55 AM EST
Shareholders of Washington Trust Bancorp, Inc. (WASH) looking to boost their income beyond the stock's 6.1% annualized dividend yield can sell the March 2025 covered call at the $40 strike and collect the premium based on the $1.50 bid, which annualizes to an additional 13.8% rate of return against the current stock price (at Stock Options Channel we call this the YieldBoost), for a total of 19.9% annualized rate in the scenario where the stock is not called away..
