KO Dividend

Although KO has a dividend of 0.51 with an ex-dividend date of Sep 15, 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 Fri 4:16 PM ET):

Coca-Cola Company (The) (KO)
Bid	Ask	Last	Change	Volume	P/E	Market Cap
69.00	69.01	68.99	+0.63	14.4M	24	294B

KO Dividend-Like Income Using Covered Calls

With KO at 68.99, 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
Oct 3	69.00	1.25	36	3.4	0.00 (0.0%)
Sep 5	69.00	0.56	8	6.9	0.00 (0.0%)

5% Yield On KO Using Covered Calls
Expiration	Strike	Call Bid	Days	Cents/Day	Upside Potential
Oct 3	69.00	1.25	36	3.4	0.00 (0.0%)
Sep 5	69.00	0.56	8	6.9	0.00 (0.0%)

10% Yield On KO Using Covered Calls
Expiration	Strike	Call Bid	Days	Cents/Day	Upside Potential
Oct 3	69.00	1.25	36	3.4	0.00 (0.0%)
Sep 5	69.00	0.56	8	6.9	0.00 (0.0%)

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Want more examples? KNX Dividend | KOD Dividend