YieldBoost Healthpeak Properties From 5.7% To 12.9% Using Options

Shareholders of Healthpeak Properties Inc (DOC) looking to boost their income beyond the stock's 5.7% annualized dividend yield can sell the April 2025 covered call at the $22.50 strike and collect the premium based on the 50 cents bid, which annualizes to an additional 7.2% rate of return against the current stock price (at Stock Options Channel we call this the YieldBoost), for a total of 12.9% annualized rate in the scenario where the stock is not called away. Any upside above $22.50 would be lost if the stock rises there and is called away, but DOC shares would have to advance 7.2% from current levels for that to occur, meaning that in the scenario where the stock is called, the shareholder has earned a 9.6% return from this trading level, in addition to any dividends collected before the stock was called.