Worthington's On A Roll
Double Dividend Stocks | Jul 16, 2012 10:45AM ET
Looking for dividend stocks with market support?
Steel and Metal processor Worthington Industries, ( .). This put option pays over seven times WOR’s next two dividends and you’ll have a lower break-even cost.
Covered Calls: Since WOR’s $22.50 call strike price is below its $22.71 share price, this covered call trade cuts into potential assigned price gains, if the stock gets assigned/sold at expiration. However, WOR’s fairly high options yields still offer a nearly 30% annualized net yield. In general, in a rising market, it often pays to sell covered calls above the stock’s current price, in order to leave room for potential price gains.
Financials: WOR’s mgt. efficiency ratios are mostly in line with its industry and its debt load is lower. It does have a slim Operating Margin however.
Disclosure: Author had no positions in WOR at the time of this writing.
Disclaimer: This article is written for informational purposes only and isn’t intended as investment advice.
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