How To YieldBoost Powell Industries To 28.9% Using Options
February 13, 2025 at 11:41 AM EST
Shareholders of Powell Industries, Inc. (POWL) looking to boost their income beyond the stock's 0.5% annualized dividend yield can sell the August covered call at the $250 strike and collect the premium based on the $29.60 bid, which annualizes to an additional 28.4% rate of return against the current stock price (at Stock Options Channel we call this the YieldBoost), for a total of 28.9% annualized rate in the scenario where the stock is not called away..
