On January 4, 2021, I sold all 115 shares of Stone Harbor Emerging (NYSE:EDF) at $9.18 to purchase 10 shares with KO at $52.60 per share + kept some cash
I have been holding EDI stock since September 2018, in general, I still like the stock, but my investment philosophy has changed and I'm not interested anymore to hold stocks without options
From the money received I bought additional 10 shares of The Coca-Cola Company (KO) at $52.60 per share. With its quarterly dividend of 0.41 cents per share, this latest buy has a dividend yield of 3.11% and will pay us an additional $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 $13.94 in dividend income (after tax) from this buy, which is about 0.53% of our $2,600 goal for 2021
We now hold 20 shares of KO, In total, they contribute about $27.88 (after tax) yearly to our dividend income portfolio.
Using dollar-cost averaging our average cost per one KO share is $50.30
By now KO takes 4.38% from our US 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 (January 4, 2021) with expiry on February 5, 2021 (monthly options), with a strike price of $53, and get for that about $1.28 premium. That about 2.43% potential income return in less than 32 days.
Looking to have 100 shares with KO by August 7, 2021
80 shares to go!