14 October, 2021 seen 162One of my preferred investing strategies is investing in stocks from The Dogs of The Dow List. Currently (2021), these…
On August 7, 2020, we bought 10 shares of The Coca-Cola Company (KO) at $47.99 per share. With its quarterly dividend of 0.41 cents per share, this latest buy has a dividend yield of 3,41% and will pay us $4.10 every quarter (before tax). Awesome!
Ko is paying a dividend in the following months: April, July, October, and December
For the rest of the year, we are looking to take $6.8 in dividend income (after tax) from this buy, which is about 0.18% from our $3,600 goal for 2020
We now hold 10 shares of KO, In total, they contribute about $13.6 (after tax) yearly to our dividend income portfolio.
We are looking to increase 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 (August 11, 2020) with expiry on September 4, 2020 (monthly options), with a strike price of $48, and get for that about $0.87 premium. That about 2% potential income return in less than 30 days.
there is no set timeframe yet when we are planning to reach 100 KO milestone but it might be the second half of 2021
90 shares to go!