How To YieldBoost HRL From 3.7% To 6.2% Using Options
November 13, 2024 at 11:35 AM EST
Shareholders of Hormel Foods Corp. (HRL) looking to boost their income beyond the stock's 3.7% annualized dividend yield can sell the January 2027 covered call at the $37 strike and collect the premium based on the $1.60 bid, which annualizes to an additional 2.4% rate of return against the current stock price (at Stock Options Channel we call this the YieldBoost), for a total of 6.2% annualized rate in the scenario where the stock is not called away..
