YieldBoost NEM From 2.6% To 7.1% Using Options

Shareholders of Newmont Corp (NEM) looking to boost their income beyond the stock's 2.6% annualized dividend yield can sell the December 2026 covered call at the $55 strike and collect the premium based on the $3.40 bid, which annualizes to an additional 4.5% rate of return against the current stock price (at Stock Options Channel we call this the YieldBoost), for a total of 7.1% annualized rate in the scenario where the stock is not called away. Any upside above $55 would be lost if the stock rises there and is called away, but NEM shares would have to climb 43% from current levels for that to occur, meaning that in the scenario where the stock is called, the shareholder has earned a 51.8% return from this trading level, in addition to any dividends collected before the stock was called.