And yet, if an investor was to buy the stock at the going market price in order to collect the dividend, there is greater downside because the stock would have to fall 15.78% to reach the $45 strike price. In the case of Wells Fargo & Co., looking at the dividend history chart for WFC below can help in judging whether the most recent dividend is likely to continue, and in turn whether it is a reasonable expectation to expect a 2.8% annualized dividend yield. Selling the covered call at the $55 strike and collecting the premium based on the $1.48 bid, annualizes to an additional 12.5% rate of return against the current stock price (this is what we at Stock Options Channel refer to as the YieldBoost ), for a total of 15.3% annualized rate in the scenario where the stock is not called away.