YieldBoost FactSet Research Systems From 0.8% To 6% Using Options
December 16, 2024 at 11:38 AM EST
Shareholders of FactSet Research Systems Inc. (FDS) looking to boost their income beyond the stock's 0.8% annualized dividend yield can sell the June 2025 covered call at the $540 strike and collect the premium based on the $13.00 bid, which annualizes to an additional 5.2% rate of return against the current stock price (at Stock Options Channel we call this the YieldBoost), for a total of 6% annualized rate in the scenario where the stock is not called away..