YieldBoost Leggett & Platt To 7.3% Using Options
December 16, 2019 at 14:22 PM EST
Shareholders of Leggett & Platt, Inc. (LEG) looking to boost their income beyond the stock's 3.1% annualized dividend yield can sell the January 2021 covered call at the $60 strike and collect the premium based on the $2.30 bid, which annualizes to an additional 4.2% rate of return against the current stock price (at Stock Options Channel we call this the YieldBoost), for a total of 7.3% annualized rate in the scenario where the stock is not called away..
