YieldBoost TAP From 3.4% To 8.9% Using Options

Shareholders of Molson Coors Beverage Co (TAP) looking to boost their income beyond the stock's 3.4% annualized dividend yield can sell the January 2026 covered call at the $57.50 strike and collect the premium based on the $4.50 bid, which annualizes to an additional 5.5% rate of return against the current stock price (at Stock Options Channel we call this the YieldBoost), for a total of 8.9% annualized rate in the scenario where the stock is not called away. Any upside above $57.50 would be lost if the stock rises there and is called away, but TAP shares would have to climb 12.6% from current levels for that to happen, meaning that in the scenario where the stock is called, the shareholder has earned a 21.4% return from this trading level, in addition to any dividends collected before the stock was called.