YieldBoost Hormel Foods From 4.1% To 6.6% Using Options
February 12, 2025 at 11:34 AM EST
Shareholders of Hormel Foods Corp. (HRL) looking to boost their income beyond the stock's 4.1% annualized dividend yield can sell the January 2027 covered call at the $35 strike and collect the premium based on the $1.40 bid, which annualizes to an additional 2.5% rate of return against the current stock price (at Stock Options Channel we call this the YieldBoost), for a total of 6.6% annualized rate in the scenario where the stock is not called away..
