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How To YieldBoost Nordson From 1% To 7.1% Using Options

Shareholders of Nordson Corp. (NDSN) looking to boost their income beyond the stock's 1% annualized dividend yield can sell the September covered call at the $280 strike and collect the premium based on the $8.00 bid, which annualizes to an additional 6% 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..

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Nordson Corporation (NDSN)