YieldBoost Cincinnati Financial Corp. From 2.7% To 11.9% Using Options
September 19, 2018 at 11:52 AM EDT
Shareholders of Cincinnati Financial Corp. (CINF) looking to boost their income beyond the stock's 2.7% annualized dividend yield can sell the December covered call at the $80 strike and collect the premium based on the $1.85 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 11.9% annualized rate in the scenario where the stock is not called away..