YieldBoost American Vanguard Corp. To 12.5% Using Options
July 02, 2024 at 12:20 PM EDT
Shareholders of American Vanguard Corp. (AVD) looking to boost their income beyond the stock's 1.4% annualized dividend yield can sell the November covered call at the $10 strike and collect the premium based on the 35 cents bid, which annualizes to an additional 11.1% rate of return against the current stock price (at Stock Options Channel we call this the YieldBoost), for a total of 12.5% annualized rate in the scenario where the stock is not called away..