YieldBoost MMM To 4.6% Using Options

Shareholders of 3M Co (MMM) looking to boost their income beyond the stock's 2.2% annualized dividend yield can sell the January 2027 covered call at the $185 strike and collect the premium based on the $6.55 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 4.6% annualized rate in the scenario where the stock is not called away. Any upside above $185 would be lost if the stock rises there and is called away, but MMM shares would have to climb 43.9% from current levels for that to occur, meaning that in the scenario where the stock is called, the shareholder has earned a 49% return from this trading level, in addition to any dividends collected before the stock was called.