How To YieldBoost LNC To 14.2% Using Options
July 11, 2024 at 12:36 PM EDT
Shareholders of Lincoln National Corp. (LNC) looking to boost their income beyond the stock's 5.8% annualized dividend yield can sell the June 2025 covered call at the $35 strike and collect the premium based on the $2.50 bid, which annualizes to an additional 8.4% rate of return against the current stock price (at Stock Options Channel we call this the YieldBoost), for a total of 14.2% annualized rate in the scenario where the stock is not called away..
