YieldBoost American Vanguard Corp. To 12% Using Options
July 08, 2024 at 11:43 AM EDT
Shareholders of American Vanguard Corp. (AVD) looking to boost their income beyond the stock's 1.5% annualized dividend yield can sell the November covered call at the $10 strike and collect the premium based on the 30 cents bid, which annualizes to an additional 10.5% rate of return against the current stock price (at Stock Options Channel we call this the YieldBoost), for a total of 12% annualized rate in the scenario where the stock is not called away..