COST Dividend Type Payments

Although COST has no upcoming (meaning, Board-approved and announced) dividends, you can sell covered calls on Costco Wholesale Corporation to create 12 extra dividend type payments per year to boost its yield. Let's look at some recent prices (last updated Thu 9:40 AM ET):

Costco Wholesale Corporation (COST)
Bid	Ask	Last	Change	Volume	P/E	Market Cap
898.05	899.24	898.64	+16.07	323K	47	392B

COST Dividend-Like Income Using Covered Calls

With COST at 898.64, 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%	26.96	7.4
5%	44.93	12.3
10%	89.86	24.6

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 COST Using Covered Calls
Expiration	Strike	Call Bid	Days	Cents/Day	Upside Potential
Feb 6	895.00	23.50	30	64.2	0.00 (0.0%)
Feb 13	895.00	24.90	37	55.8	0.00 (0.0%)

5% Yield On COST Using Covered Calls
Expiration	Strike	Call Bid	Days	Cents/Day	Upside Potential
Feb 6	895.00	23.50	30	64.2	0.00 (0.0%)
Feb 13	895.00	24.90	37	55.8	0.00 (0.0%)

10% Yield On COST Using Covered Calls
Expiration	Strike	Call Bid	Days	Cents/Day	Upside Potential
Feb 6	895.00	23.50	30	64.2	0.00 (0.0%)
Feb 13	895.00	24.90	37	55.8	0.00 (0.0%)

Want to increase dividends with covered calls? Sign Up For A Free Trial

Top 10 Open Interest For Jan 16 Expiration				Top 5 High Yield
1.	NVDA dividend	6.	AAPL dividend	1.	SERV dividend
2.	INTC dividend	7.	SPY dividend	2.	ABAT dividend
3.	IBIT dividend	8.	GLD dividend	3.	TMQ dividend
4.	TLT dividend	9.	QQQ dividend	4.	CRML dividend
5.	SLV dividend	10.	NFLX dividend	5.	CRWV dividend

Want more examples? CORT Dividend | COTY Dividend