Strategy To YieldBoost KMB To 6.6% Using Options
July 10, 2024 at 11:47 AM EDT
Shareholders of Kimberly-Clark Corp. (KMB) looking to boost their income beyond the stock's 3.5% annualized dividend yield can sell the June 2025 covered call at the $155 strike and collect the premium based on the $4.10 bid, which annualizes to an additional 3.1% rate of return against the current stock price (at Stock Options Channel we call this the YieldBoost), for a total of 6.6% annualized rate in the scenario where the stock is not called away..
