How To YieldBoost Stewart Enterprises To 2.1%

Shareholders of Stewart Enterprises, Inc. (NASD: STEI) looking to boost their income beyond the stock's 1.4% annualized dividend yield can sell the February 2014 covered call at the $15 strike and collect the premium based on the 5 cents bid, which annualizes to an additional 0.8% rate of return against the current stock price (at Stock Options Channel we call this the YieldBoost), for a total of 2.1% annualized rate in the scenario where the stock is not called away. Any upside above $15 would ...