How To YieldBoost La-Z-Boy From 1.9% To 14.2% Using Options
October 04, 2024 at 11:43 AM EDT
Shareholders of La-Z-Boy Inc. (LZB) looking to boost their income beyond the stock's 1.9% annualized dividend yield can sell the April 2025 covered call at the $45 strike and collect the premium based on the $2.70 bid, which annualizes to an additional 12.2% rate of return against the current stock price (at Stock Options Channel we call this the YieldBoost), for a total of 14.2% annualized rate in the scenario where the stock is not called away..