How To YieldBoost AWK To 70.3% Using Options
June 13, 2024 at 11:44 AM EDT
Shareholders of American Water Works Co, Inc. (AWK) looking to boost their income beyond the stock's 2.4% annualized dividend yield can sell the June covered call at the $185 strike and collect the premium based on the $1.90 bid, which annualizes to an additional 67.9% rate of return against the current stock price (at Stock Options Channel we call this the YieldBoost), for a total of 70.3% annualized rate in the scenario where the stock is not called away..
