YieldBoost Woodward To 6.7% Using Options
December 26, 2024 at 11:41 AM EST
Shareholders of Woodward, Inc. (WWD) looking to boost their income beyond the stock's 0.6% annualized dividend yield can sell the October 2025 covered call at the $220 strike and collect the premium based on the $8.40 bid, which annualizes to an additional 6.1% rate of return against the current stock price (at Stock Options Channel we call this the YieldBoost), for a total of 6.7% annualized rate in the scenario where the stock is not called away..
