YieldBoost Newell Brands To 10.4% Using Options

Shareholders of Newell Brands Inc (NWL) looking to boost their income beyond the stock's 4.5% annualized dividend yield can sell the January 2026 covered call at the $10 strike and collect the premium based on the 55 cents bid, which annualizes to an additional 5.9% rate of return against the current stock price (at Stock Options Channel we call this the YieldBoost), for a total of 10.4% annualized rate in the scenario where the stock is not called away. Any upside above $10 would be lost if the stock rises there and is called away, but NWL shares would have to advance 59.7% from current levels for that to happen, meaning that in the scenario where the stock is called, the shareholder has earned a 68.5% return from this trading level, in addition to any dividends collected before the stock was called.