On May 3, 2021, I bought additional 10 shares of The Coca-Cola Company (KO) stock paying $54.42 per share. With its quarterly dividend of 0.42 cents per share, this latest buy has a dividend yield of 3.08% and will pay us an additional $4.20 every quarter (before tax). Awesome!
Ko is paying a dividend in the following months: April, July, October, and December, we will enjoy some small boost in these months
KO stock price May 3, 2021
I keep buying KO stock once a month, using the so-called dollar-cost averaging until I will reach 100 shares, and then will start selling covered calls.
There are 60 shares of KO now in the portfolio, In total, they contribute about $85.68 (after tax) yearly to our dividend income portfolio.
Using dollar-cost averaging our average cost per one KO share is $51.11
By now KO takes 6.60% from our total stock portfolio.
I'm looking to increase the total share count to 100, and then start selling covered calls on KO stock.
Just for the illustration:
We could sell a covered call on KO today (May 4, 2021) with expiry on June 4, 2021 (monthly options), with a strike price of $55, and get for that about $0.83 premium per every share.
Looking to have 100 shares with KO by August 7, 2021
40 shares to go!