YieldBoost Hillshire Brands From 1.5% To 11.1%

Shareholders of Hillshire Brands Co (NYSE: HSH) looking to boost their income beyond the stock's 1.5% annualized dividend yield can sell the October covered call at the $38 strike and collect the premium based on the 90 cents bid, which annualizes to an additional 9.6% rate of return against the current stock price (at Stock Options Channel we call this the YieldBoost), for a total of 11.1% annualized rate in the scenario where the stock is not called away. Any upside above $38 would be lost if ...