How To YieldBoost VSEC From 0.4% To 9.5% Using Options
December 13, 2024 at 12:27 PM EST
Shareholders of VSE Corp. (VSEC) looking to boost their income beyond the stock's 0.4% annualized dividend yield can sell the October 2025 covered call at the $125 strike and collect the premium based on the $8.30 bid, which annualizes to an additional 9.2% rate of return against the current stock price (at Stock Options Channel we call this the YieldBoost), for a total of 9.5% annualized rate in the scenario where the stock is not called away..