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Strategy To YieldBoost DigitalBridge Group From 0.4% To 15.1% Using Options

Shareholders of DigitalBridge Group Inc (DBRG) looking to boost their income beyond the stock's 0.4% annualized dividend yield can sell the January 2026 covered call at the $12 strike and collect the premium based on the 70 cents bid, which annualizes to an additional 14.7% rate of return against the current stock price (at Stock Options Channel we call this the YieldBoost), for a total of 15.1% annualized rate in the scenario where the stock is not called away. Any upside above $12 would be lost if the stock rises there and is called away, but DBRG shares would have to advance 14.2% from current levels for that to occur, meaning that in the scenario where the stock is called, the shareholder has earned a 20.8% return from this trading level, in addition to any dividends collected before the stock was called.

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DigitalBridge Group, Inc. (DBRG)