YieldBoost NI From 3% To 9% Using Options
May 14, 2025 at 12:10 PM EDT
Shareholders of NiSource Inc. (NI) looking to boost their income beyond the stock's 3% annualized dividend yield can sell the October covered call at the $40 strike and collect the premium based on the 95 cents bid, which annualizes to an additional 6% rate of return against the current stock price (at Stock Options Channel we call this the YieldBoost), for a total of 9% annualized rate in the scenario where the stock is not called away..
