KO Dividend Type Payments

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 Tue 4:16 PM ET):

Coca-Cola Company (The) (KO)
Bid	Ask	Last	Change	Volume	P/E	Market Cap
72.28	72.41	72.35	+0.56	16.0M	29	309B

KO Dividend-Like Income Using Covered Calls

With KO at 72.35, 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%	2.17	0.6
5%	3.62	1.0
10%	7.24	2.0

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	73.00	0.30	4	7.5	0.59 (0.8%)
Jun 6	73.00	1.48	39	3.8	0.59 (0.8%)

5% Yield On KO Using Covered Calls
Expiration	Strike	Call Bid	Days	Cents/Day	Upside Potential
May 2	73.00	0.30	4	7.5	0.59 (0.8%)
Jun 6	73.00	1.48	39	3.8	0.59 (0.8%)

10% Yield On KO Using Covered Calls
Expiration	Strike	Call Bid	Days	Cents/Day	Upside Potential
May 2	73.00	0.30	4	7.5	0.59 (0.8%)
Jun 6	73.00	1.48	39	3.8	0.59 (0.8%)

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Want more examples? KNX Dividend | KOD Dividend