How To YieldBoost HLT From 0.3% To 5.2% Using Options

Shareholders of Hilton Worldwide Holdings Inc (HLT) looking to boost their income beyond the stock's 0.3% annualized dividend yield can sell the January 2026 covered call at the $240 strike and collect the premium based on the $16.80 bid, which annualizes to an additional 5% rate of return against the current stock price (at Stock Options Channel we call this the YieldBoost), for a total of 5.2% annualized rate in the scenario where the stock is not called away. Any upside above $240 would be lost if the stock rises there and is called away, but HLT shares would have to advance 17.5% from current levels for that to occur, meaning that in the scenario where the stock is called, the shareholder has earned a 25.7% return from this trading level, in addition to any dividends collected before the stock was called.