KO Dividend Type Payments

Coca-Cola Company (The) dividend

Although KO has no upcoming (meaning, Board-approved and announced) dividends, you can sell covered calls on Coca-Cola Company (The) to create 12 extra dividend type payments per year to boost its yield. Let's look at some recent prices (last updated Thu 4:16 PM ET):

Coca-Cola Company (The) (KO)
Bid Ask Last Change Volume P/E Market Cap
62.45 62.50 62.45 -0.40 21.1M 26 271B

KO Dividend-Like Income Using Covered Calls

With KO at 62.45, here's a table showing how big the annual "dividend" (i.e. total annual call premium received) would need to be to attain 3%, 5%, and 10% annual yields. Also shown is the equivalent number of cents/day necessary to achieve each yield:

Annual Yield Annual Premium Cents/Day
3% 1.87 0.5
5% 3.12 0.9
10% 6.25 1.7

So now we need to find out of the money covered calls that pay at least the prescribed cents/day amount of time premium. That will generate income and, because they are out of the money, leave room for some upside potential on the stock. Here are some examples:

3% Yield On KO Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Dec 27 63.00 0.45 9 5.0 0.50 (0.8%)
Jan 3 63.00 0.71 16 4.4 0.50 (0.8%)
5% Yield On KO Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Dec 27 63.00 0.45 9 5.0 0.50 (0.8%)
Jan 3 63.00 0.71 16 4.4 0.50 (0.8%)
10% Yield On KO Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Dec 27 63.00 0.45 9 5.0 0.50 (0.8%)
Jan 3 63.00 0.71 16 4.4 0.50 (0.8%)

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