KO Dividend

Although KO has a dividend of 0.49 with an ex-dividend date of Jun 14, 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 Thu 4:16 PM ET):

Coca-Cola Company (The) (KO)
Bid	Ask	Last	Change	Volume	P/E	Market Cap
62.88	62.92	62.88	+0.03	8.9M	25	0.8B

KO Dividend-Like Income Using Covered Calls

With KO at 62.88, 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%	1.89	0.5
5%	3.14	0.9
10%	6.29	1.7

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 7	63.00	0.77	30	2.6	0.08 (0.1%)
Jun 14	63.00	0.86	37	2.3	0.08 (0.1%)

5% Yield On KO Using Covered Calls
Expiration	Strike	Call Bid	Days	Cents/Day	Upside Potential
Jun 7	63.00	0.77	30	2.6	0.08 (0.1%)
Jun 14	63.00	0.86	37	2.3	0.08 (0.1%)

10% Yield On KO Using Covered Calls
Expiration	Strike	Call Bid	Days	Cents/Day	Upside Potential
Jun 7	63.00	0.77	30	2.6	0.08 (0.1%)
Jun 14	63.00	0.86	37	2.3	0.08 (0.1%)

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Want more examples? KNX Dividend | KOD Dividend