YieldBoost PH From 1.1% To 4.9% Using Options

Shareholders of Parker Hannifin Corp (PH) looking to boost their income beyond the stock's 1.1% annualized dividend yield can sell the November 2025 covered call at the $740 strike and collect the premium based on the $27.40 bid, which annualizes to an additional 3.9% rate of return against the current stock price (at Stock Options Channel we call this the YieldBoost), for a total of 4.9% annualized rate in the scenario where the stock is not called away. Any upside above $740 would be lost if the stock rises there and is called away, but PH shares would have to advance 22.4% from current levels for that to occur, meaning that in the scenario where the stock is called, the shareholder has earned a 26.9% return from this trading level, in addition to any dividends collected before the stock was called.