How To YieldBoost MLM From 0.6% To 8% Using Options
December 17, 2024 at 11:34 AM EST
Shareholders of Martin Marietta Materials, Inc. (MLM) looking to boost their income beyond the stock's 0.6% annualized dividend yield can sell the December 2025 covered call at the $590 strike and collect the premium based on the $41.00 bid, which annualizes to an additional 7.4% rate of return against the current stock price (at Stock Options Channel we call this the YieldBoost), for a total of 8% annualized rate in the scenario where the stock is not called away..
