YieldBoost Hyster-Yale Inc To 13.3% Using Options

Shareholders of Hyster-Yale Inc (HY) looking to boost their income beyond the stock's 2.4% annualized dividend yield can sell the March 2025 covered call at the $65 strike and collect the premium based on the $3.80 bid, which annualizes to an additional 10.9% rate of return against the current stock price (at Stock Options Channel we call this the YieldBoost), for a total of 13.3% annualized rate in the scenario where the stock is not called away. Any upside above $65 would be lost if the stock rises there and is called away, but HY shares would have to climb 8.5% from current levels for that to occur, meaning that in the scenario where the stock is called, the shareholder has earned a 14.8% return from this trading level, in addition to any dividends collected before the stock was called.