YieldBoost Lennox International From 0.7% To 5.4% Using Options

Shareholders of Lennox International Inc (LII) looking to boost their income beyond the stock's 0.7% annualized dividend yield can sell the December 2025 covered call at the $760 strike and collect the premium based on the $29.00 bid, which annualizes to an additional 4.7% rate of return against the current stock price (at Stock Options Channel we call this the YieldBoost), for a total of 5.4% annualized rate in the scenario where the stock is not called away. Any upside above $760 would be lost if the stock rises there and is called away, but LII shares would have to advance 20.6% from current levels for that to happen, meaning that in the scenario where the stock is called, the shareholder has earned a 25.2% return from this trading level, in addition to any dividends collected before the stock was called.