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 Tue 3:45 PM ET):

Coca-Cola Company (The) (KO)
Bid Ask Last Change Volume P/E Market Cap
69.48 69.49 69.49 +0.02 8.1M 28 299B

KO Dividend-Like Income Using Covered Calls

With KO at 69.49, 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% 2.08 0.6
5% 3.47 1.0
10% 6.95 1.9

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
Aug 1 70.00 1.14 18 6.3 0.51 (0.7%)
Aug 8 70.00 1.31 25 5.2 0.51 (0.7%)
5% Yield On KO Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Aug 1 70.00 1.14 18 6.3 0.51 (0.7%)
Aug 8 70.00 1.31 25 5.2 0.51 (0.7%)
10% Yield On KO Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Aug 1 70.00 1.14 18 6.3 0.51 (0.7%)
Aug 8 70.00 1.31 25 5.2 0.51 (0.7%)

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