How To YieldBoost Eversource Energy From 4.9% To 9% Using Options

Shareholders of Eversource Energy (ES) looking to boost their income beyond the stock's 4.9% annualized dividend yield can sell the January 2025 covered call at the $65 strike and collect the premium based on the $1.40 bid, which annualizes to an additional 4% rate of return against the current stock price (at Stock Options Channel we call this the YieldBoost), for a total of 9% annualized rate in the scenario where the stock is not called away. Any upside above $65 would be lost if the stock rises there and is called away, but ES shares would have to advance 12% from current levels for that to happen, meaning that in the scenario where the stock is called, the shareholder has earned a 14.4% return from this trading level, in addition to any dividends collected before the stock was called.