Strategy To YieldBoost NiSource From 2.9% To 9.1% Using Options
February 12, 2025 at 12:20 PM EST
Shareholders of NiSource Inc. (NI) looking to boost their income beyond the stock's 2.9% annualized dividend yield can sell the July covered call at the $40 strike and collect the premium based on the $1.00 bid, which annualizes to an additional 6.2% rate of return against the current stock price (at Stock Options Channel we call this the YieldBoost), for a total of 9.1% annualized rate in the scenario where the stock is not called away..
