YieldBoost HRL To 7% Using Options

Shareholders of Hormel Foods Corp. (HRL) looking to boost their income beyond the stock's 1.9% annualized dividend yield can sell the January 2018 covered call at the $40 strike and collect the premium based on the $1.85 bid, which annualizes to an additional 5.1% rate of return against the current stock price (at Stock Options Channel we call this the YieldBoost), for a total of 7% annualized rate in the scenario where the stock is not called away..