YieldBoost Terex From 1.2% To 8.1% Using Options
June 06, 2024 at 11:41 AM EDT
Shareholders of Terex Corp. (TEX) looking to boost their income beyond the stock's 1.2% annualized dividend yield can sell the January 2025 covered call at the $70 strike and collect the premium based on the $2.45 bid, which annualizes to an additional 7% rate of return against the current stock price (at Stock Options Channel we call this the YieldBoost), for a total of 8.1% annualized rate in the scenario where the stock is not called away..