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How To YieldBoost CG From 2.4% To 20.9% Using Options

Shareholders of Carlyle Group Inc (CG) looking to boost their income beyond the stock's 2.4% annualized dividend yield can sell the March 2026 covered call at the $62.50 strike and collect the premium based on the $4.70 bid, which annualizes to an additional 18.5% rate of return against the current stock price (at Stock Options Channel we call this the YieldBoost), for a total of 20.9% annualized rate in the scenario where the stock is not called away. Any upside above $62.50 would be lost if the stock rises there and is called away, but CG shares would have to climb 6% from current levels for that to occur, meaning that in the scenario where the stock is called, the shareholder has earned a 14% return from this trading level, in addition to any dividends collected before the stock was called.

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Carlyle Group Inc. (CG)