CCE Dividend

COCA-COLA ENTERPRISES dividend

Although CCE has a dividend of 0.30 with an ex-dividend date of Aug 21, you can sell covered calls on COCA-COLA ENTERPRISES to create 12 extra dividend type payments per year to boost its yield. Let's look at some recent prices (last updated Thu 1:15 PM ET):

COCA-COLA ENTERPRISES (CCE)
Bid Ask Last Change Volume P/E Market Cap
42.67 42.68 42.68 -0.07 520K 28 21B

CCE Dividend-Like Income Using Covered Calls

With CCE at 42.68, here's a table showing how big the annual "dividend" (ie. 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% 1.28 0.4
5% 2.13 0.6
10% 4.27 1.2

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 CCE Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Sep 21 44.00 0.25 37 0.7 1.32 (3.1%)
Nov 16 45.00 0.50 93 0.5 2.32 (5.4%)
5% Yield On CCE Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Sep 21 44.00 0.25 37 0.7 1.32 (3.1%)
Nov 16 44.00 0.80 93 0.9 1.32 (3.1%)
10% Yield On CCE Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Sep 21 43.00 0.55 37 1.5 0.32 (0.7%)
Nov 16 43.00 1.25 93 1.3 0.32 (0.7%)

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Top 10 Open Interest For Aug 17 Expiration     Top 5 High Yield
1.SPY dividend 6.XLF dividend   1.JWN dividend
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Want more examples? CC Dividend | CCI Dividend