YieldBoost WWD From 0.8% To 8.1%

Shareholders of Woodward, Inc. (NASD: WWD) looking to boost their income beyond the stock's 0.8% annualized dividend yield can sell the January 2014 covered call at the $45 strike and collect the premium based on the $1.45 bid, which annualizes to an additional 7.3% rate of return against the current stock price (at Stock Options Channel we call this the YieldBoost), for a total of 8.1% annualized rate in the scenario where the stock is not called away. Any upside above $45 would be lost if the ...