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 Mon 4:16 PM ET):

Coca-Cola Company (The) (KO)
Bid Ask Last Change Volume P/E Market Cap
68.91 68.94 68.95 +0.28 12.6M 28 295B

KO Dividend-Like Income Using Covered Calls

With KO at 68.95, 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% 2.07 0.6
5% 3.45 0.9
10% 6.90 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
May 2 69.00 1.45 40 3.6 0.06 (0.1%)
Apr 4 69.00 0.69 12 5.8 0.06 (0.1%)
5% Yield On KO Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
May 2 69.00 1.45 40 3.6 0.06 (0.1%)
Apr 4 69.00 0.69 12 5.8 0.06 (0.1%)
10% Yield On KO Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
May 2 69.00 1.45 40 3.6 0.06 (0.1%)
Apr 4 69.00 0.69 12 5.8 0.06 (0.1%)

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