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Northrop Grumman Corp. (NOC), the defense company, just hiked its annual dividend rate by almost 7%. This was based on its strong free cash flow (FCF) guidance. But NOC stock is down over 26% from its peak and well below its average historical yield.
Value investors like this and are shorting out-of-the-money (OTM) nearby expiry puts to set a lower buy-in point for an even higher yield. This article will show how this works.
