How To YieldBoost NI To 5% Using Options
July 18, 2024 at 11:39 AM EDT
Shareholders of NiSource Inc. (NI) looking to boost their income beyond the stock's 3.4% annualized dividend yield can sell the January 2025 covered call at the $35 strike and collect the premium based on the 25 cents bid, which annualizes to an additional 1.6% rate of return against the current stock price (at Stock Options Channel we call this the YieldBoost), for a total of 5% annualized rate in the scenario where the stock is not called away..
