YieldBoost ResMed From 0.9% To 6.8% Using Options
December 18, 2024 at 12:01 PM EST
Shareholders of ResMed Inc. (RMD) looking to boost their income beyond the stock's 0.9% annualized dividend yield can sell the January 2027 covered call at the $310 strike and collect the premium based on the $29.30 bid, which annualizes to an additional 5.9% rate of return against the current stock price (at Stock Options Channel we call this the YieldBoost), for a total of 6.8% annualized rate in the scenario where the stock is not called away..