YieldBoost Genuine Parts To 11.5% Using Options
November 11, 2024 at 11:48 AM EST
Shareholders of Genuine Parts Co. (GPC) looking to boost their income beyond the stock's 3.2% annualized dividend yield can sell the May 2025 covered call at the $135 strike and collect the premium based on the $5.20 bid, which annualizes to an additional 8.3% rate of return against the current stock price (at Stock Options Channel we call this the YieldBoost), for a total of 11.5% annualized rate in the scenario where the stock is not called away..
