COKE Dividend Type Payments
Although COKE has no upcoming (meaning, Board-approved and announced) dividends, you can sell covered calls on Coca-Cola Consolidated, Inc. to create 12 extra dividend type payments per year to boost its yield. Let's look at some recent prices (last updated Tue 1:35 PM ET):
| Coca-Cola Consolidated, Inc. (COKE) |
|---|
| Bid |
Ask |
Last |
Change |
Volume |
P/E |
Market Cap |
| 154.36 |
154.94 |
154.56 |
+0.47 |
134K |
7.0 |
13B |
COKE Dividend-Like Income Using Covered Calls
With COKE at 154.56, 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% |
4.64 |
1.3 |
| 5% |
7.73 |
2.1 |
| 10% |
15.46 |
4.2 |
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 COKE Using Covered Calls |
|---|
| Expiration |
Strike |
Call Bid |
Days |
Cents/Day |
Upside Potential |
| Feb 20 |
155.00 |
4.30 |
11 |
39.1 |
0.06 (0.0%) |
| Mar 20 |
155.00 |
5.80 |
39 |
14.9 |
0.06 (0.0%) |
| 5% Yield On COKE Using Covered Calls |
|---|
| Expiration |
Strike |
Call Bid |
Days |
Cents/Day |
Upside Potential |
| Feb 20 |
155.00 |
4.30 |
11 |
39.1 |
0.06 (0.0%) |
| Mar 20 |
155.00 |
5.80 |
39 |
14.9 |
0.06 (0.0%) |
| 10% Yield On COKE Using Covered Calls |
|---|
| Expiration |
Strike |
Call Bid |
Days |
Cents/Day |
Upside Potential |
| Feb 20 |
155.00 |
4.30 |
11 |
39.1 |
0.06 (0.0%) |
| Mar 20 |
155.00 |
5.80 |
39 |
14.9 |
0.06 (0.0%) |
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