YieldBoost Sylvamo From 2.2% To 13.4% Using Options

Shareholders of Sylvamo Corp (SLVM) looking to boost their income beyond the stock's 2.2% annualized dividend yield can sell the May 2025 covered call at the $92.50 strike and collect the premium based on the $5.50 bid, which annualizes to an additional 11.2% rate of return against the current stock price (at Stock Options Channel we call this the YieldBoost), for a total of 13.4% annualized rate in the scenario where the stock is not called away. Any upside above $92.50 would be lost if the stock rises there and is called away, but SLVM shares would have to advance 12.8% from current levels for that to happen, meaning that in the scenario where the stock is called, the shareholder has earned a 19.5% return from this trading level, in addition to any dividends collected before the stock was called.