KO Dividend Type Payments

COCA-COLA dividend

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

COCA-COLA (KO)
Bid Ask Last Change Volume P/E Market Cap
43.53 43.64 43.55 -0.57 11.8M 134 188B

KO Dividend-Like Income Using Covered Calls

With KO at 43.55, 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% 1.31 0.4
5% 2.18 0.6
10% 4.36 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 KO Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Jun 22 44.50 0.02 5 0.4 0.86 (2.0%)
Jun 29 44.50 0.09 12 0.8 0.86 (2.0%)
5% Yield On KO Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Jun 22 44.00 0.10 5 2.0 0.36 (0.8%)
Jun 29 44.50 0.09 12 0.8 0.86 (2.0%)
10% Yield On KO Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Jun 22 44.00 0.10 5 2.0 0.36 (0.8%)
Jun 29 44.00 0.22 12 1.8 0.36 (0.8%)

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Top 10 Open Interest For Jul 20 Expiration     Top 5 High Yield
1.SPY dividend 6.MU dividend   1.RENN dividend
2.EEM dividend 7.TWX dividend   2.SRPT dividend
3.XLF dividend 8.EWZ dividend   3.MU dividend
4.SPX dividend 9.QQQ dividend   4.GME dividend
5.T dividend 10.BAC dividend   5.BB dividend

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