YieldBoost Cummins To 6% Using Options

Shareholders of Cummins, Inc. (CMI) looking to boost their income beyond the stock's 2.1% annualized dividend yield can sell the January 2026 covered call at the $420 strike and collect the premium based on the $14.70 bid, which annualizes to an additional 3.9% rate of return against the current stock price (at Stock Options Channel we call this the YieldBoost), for a total of 6% annualized rate in the scenario where the stock is not called away..